The transaction involves payments in cash and shares, which turned B2Gold into Calibre’s largest shareholder
Canadian gold mining company B2Gold has completed the sale of Nicaragua assets to Calibre Mining for $100m.
The Nicaragua Assets consist of El Limon and La Libertad gold mines, the Pavon gold project and additional mineral concessions.
The transaction involves payments in cash and shares, which turned B2Gold into Calibre’s largest shareholder.
Details of the transaction
The Vancouver-based company received 87,986,666 shares of Calibre on closing, which represents nearly 28.35% of the issued and outstanding shares on closing. Calibre also paid $40m in cash and a $10m convertible debenture. B2Gold will receive an additional cash payment of $10m in October next year.
B2Gold president and CEO Clive Johnson said: “We are pleased to join forces with Calibre in Nicaragua to continue our legacy of ten years of responsible exploration, development and gold production.
“We are pleased to become Calibre’s largest shareholder and through our roles on their Advisory Board and Board of Directors, we look forward to assisting Calibre’s experienced executive team and the combined B2Gold/Calibre management team in Nicaragua.”
The agreement for the sale of Nicaragua assets by B2Gold was signed in July 2019.
Since 2010, the El Limon and La Libertad Mines have produced more than 1.4 million ounces of gold, according to the company.
In 2019, the two mines are estimated to record production of between 150,000 and 160,000 ounces.
After acquiring the mines in 2009, B2Gold claims to have realised significant exploration success around both mines, by improving the operations and economics of the El Limon mine and constructing a mill facility at the La Libertad Mine.
In September, AngloGold Ashanti had reached an agreement with B2Gold under which the latter will fund an investment and exploration programme at the Gramalote gold project in Colombia for an increased stake.
The two companies are currently joint venture partners in the gold development project located in the north-west of the Antioquia Department.