Canada’s B2Gold (TSX: BTO)(NYSE: BTG) is buying fellow precious metals miner Sabina Gold & Silver Corp (TSX: SBB)(OTC: SGSVF) in an all-stock deal worth C$1.1 billion ($824m).
The transaction hands B2Gold the Back River Gold District property in Nunavut, Canada, which holds multiple high-potential mineralized zones poised to boost the Vancouver-based gold giant’s reserves.
The most advanced project in the area, situated about 520km northeast of Yellowknife, is Sabina’s Goose gold, which is is full permitted and construction ready.
Goose is expected to become Nunavut’s third operating mine in 2025, when it starts commercial production. The other two are run by Agnico Eagle.
It is also slated to average 223,000 ounces of gold annually over a 15-year life of mine from 3.6 million ounces of mineral reserves averaging 5.97 g/t gold.
“We are confident that the district has strong untapped upside with numerous avenues for resource growth,” B2Gold chief executive officer Clive Johnson said in the statement.
The acquisition increases B2Gold’s reserves by 66% to 9 million ounces and its measured and indicated resources by 52% to 18.5 million ounces.
Under the terms of the deal, B2Gold will issue 0.3867 of a common share for each Sabina common share held, equivalent to a value of C$1.87 a share. The figure represents a 45% premium to Sabina’s closing price on the Toronto Stock Exchange as of February 2, the date the non-binding letter of intent was signed.
The boards of both miners have unanimously approved the deal and Sabina’s directors have recommended its shareholders to vote in favour of the transaction.
B2Gold, which is due to report its full-year 2022 results on February 23, operates mines in Mali, Namibia and The Philippines.
from MINING.COM https://ift.tt/rVH03OT
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