Further consolidation continues within the precious metals sector, with B2Gold (TSX: BTO) this morning reporting it has completed the acquisition of Sabina Gold & Silver (TSX: SBB).
The transaction has seen Sabina shareholders receive 0.3867 shares of B2Gold for each share of Sabina held, which at the time of announcement worked out to $1.87. After the value in B2’s shares rose, the final consideration worked out to approximately $2.15 per share, pegging the transaction at roughly $1.2 billion, with B2Gold issuing 216 million shares to close the deal.
The transaction represented a 45% premium to Sabina shareholders on the day of announcement.
“The closing of the acquisition of Sabina and the Back River Gold District represents a milestone for B2Gold as we continue to build a low-cost responsible senior gold mining company. We are excited to add such a high-quality, high grade gold project in a top mining jurisdiction to our global portfolio, and we are thrilled to welcome the exceptional Sabina team into B2Gold,” commented B2Gold CEO Clive Johnson.
In acquiring Sabina, B2 took possession of the firms Back River Gold District, where the Goose Project which is slated to enter production in 2025. Based in Nunavut, the project is estimated to have annual production of 287,000 ounces of gold per year and a mine life of 15 years. The property currently contains mineral reserves of 3.6 million ounces of gold at 5.97 g/t. Plant civic works have already been completed, pre-stripping is underway, and procurement for the mine is 97% complete.
“As we continue with the construction of the Goose project and move toward commencement of production in 2025, our exploration program will also start immediately. We aim to further define the Back River Gold District’s untapped potential and unlock the significant value we see and opportunities for growth,” continued Johnson.
B2Gold last traded at $5.56 on the TSX.
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