Barrick, which is the world's largest gold miner and now owns 63.9% of Acacia's shares, had earlier offered to offer 0.153 of a new common share of Barrick for every ordinary share in Acacia.
With this new offer, Acacia shareholders will receive 0.168 shares of Barrick on a share-for-share exchange, implying a value of 232 pence per Acacia share.
The bid is around 10% more than Barrick originally said it would offer and follows two months of wrangling between the companies.
Barrick Gold Corp. has reached a deal to buy the stake in Acacia Mining that it does not already own, after raising its offer for the African gold miner. With these new terms, Barrick will pay US$428 million for the over 410 million remaining Acacia shares, for a total company value of US$1.19 billion.
Acacia was handed a $190-billion tax bill in Tanzania, which had been reduced to $300-million under a 2017 agreement. Acacia says it continues to favor a negotiated resolution to the company's dispute with the Government of Tanzania.
"It's a fair offer and a good bump up", Peter Geleta, chief executive officer of Acacia, said in an interview on Friday.
"We commend the two parties for the mutual agreement", a spokesperson with the Tanzanian government tweeted on Friday.
The joint statement pointed out that an independent technical value of the Acacia exploration properties reflects an attributable value range of $37 million at the lower end and $87 million at the upper, and a preferred value of $57 million.
Mark Bristow, who came on as CEO of Barrick at the start of the year, brought with him extensive experience working in Africa after previously leading Randgold Resources.
Acacia has three producing mines in Tanzania - North Mara, Bulyanhulu and Buzwagi. Barrick has already been in negotiations with the government in an effort to resolve the issues and get the export ban lifted.