B2Gold to acquire Oklo Resources and its Dandoko gold project near Fekola mine for A$91 million
(Kitco News) - B2Gold (TSX: BTO) announced Thursday that it has entered into a definitive scheme implementation agreement with Oklo Resources pursuant to which B2Gold has agreed to acquire 100% of the fully paid ordinary shares of Oklo.
According to the company's statement, the total consideration is 0.0206 of a common share of B2Gold and A$0.0525 in cash for each Oklo share held, representing a purchase price of approximately A$0.1725 for each Oklo share and values the transaction at approximately A$91.3 million (including up to approximately A$27.4 million cash consideration).
Upon implementation of the scheme, in addition to the cash consideration, B2Gold expects to issue up to 10,754,284 B2Gold shares to Oklo shareholders, representing approximately 1% of the B2Gold shares on an undiluted basis.
"The acquisition of Oklo is expected to provide B2Gold with an additional landholding of 1,405 km2 covering highly prospective greenstone belts in Mali, West Africa, including Oklo's flagship Dandoko project (550 km2)," the company said in a statement.
In March 2021, Oklo delivered an initial JORC 2012 compliant measured and indicated mineral resource estimate of 8.70 million tonnes at 1.88 grams per tonne ("g/t") for 528,000 ounces of gold and an inferred mineral resource estimate of 2.63 million tonnes at 1.67 g/t for 141,000 ounces of gold.
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The company added that mineral resources are distributed across the Seko, Koko, Disse and Diabarou deposits, which all remain open and are expected to grow with ongoing exploration drilling both along strike and at depth.
Importantly, B2Gold believes that approximately 65% of the resource is contained in soft oxidized material, which would be amenable to processing at B2Gold's Fekola mill.
B2Gold is a senior gold producer headquartered in Vancouver, Canada. Founded in 2007, today, B2Gold has operating gold mines in Mali, Namibia and the Philippines and numerous exploration and development projects in Mali, Colombia, Finland, Uzbekistan, and other countries. B2Gold forecasts total consolidated gold production of between 990,000 and 1,050,000 ounces in 2022.