B2Gold To Sell Nicaraguan Mines To Calibre, Become Biggest Shareholder
(Kitco News) - B2Gold Corp. (TSX: BTO; NYSE AMERICAN: BTG; NSX: B2G) and Calibre Mining Corp. (TSXV: CXB) Tuesday announced an agreement in which B2Gold will become Calibre’s largest shareholder and Calibre will acquire the El Limon and La Libertad gold mines, the Pavon gold project and additional mineral concessions in Nicaragua currently held by B2Gold.
The $100 million purchase price will be paid with a combination of cash, common shares and a convertible debenture, the companies said. Following the completion of the transaction, B2Gold will own approximate 31% of the equity in Calibre.
B2Gold said the deal will allow the company to remain involved with the Nicaraguan operations yet focus on its other mines elsewhere. With its interest in Calibre, B2Gold will have the right to appoint one director to the Calibre board and participate on an advisory board to the main Calibre board.
The El Limon and La Libertad mines have produced in excess of 1.4 million ounces of gold since 2010. Their combined 2019 gold production is projected to be between 150,000 and 160,000 ounces.
Meanwhile, Calibre has entered into an agreement with Canaccord Genuity Corp. and Sprott Capital Partners LP for a private placement of up to 167 million subscription receipts for gross proceeds of up to C$100 million.
The deal is subject to a number of conditions, including majority of minority shareholder approval, the successful negotiation and execution of a definitive agreement by B2Gold and Calibre, and more. Plans call for Calibre to apply for a move to the Toronto Stock Exchange.
“With Calibre and the combined Nicaraguan management team focusing on the El Limon and La Libertad mines and other opportunities, B2Gold will focus on continuing to optimize responsible production at our other existing mines in Mali, Namibia and the Philippines as well as advancing our impressive pipeline of development and exploration projects,” said Clive Johnson, president and chief executive officer of B2Gold. “In addition, B2Gold will continue to pursue additional greenfield and advanced exploration opportunities.”
The La Libertad and El Limon mines provide 2,800 direct and contract jobs.
“We see continuing the ongoing commitment to the current management team and many long-term employees as fundamental to the future success of our company and are grateful to have B2Gold’s unwavering guidance and involvement in carrying out this responsibility,” said Russell Ball, executive chairman of Calibre.