Calibre would acquire the assets for a purchase price of $100m (£79.5m), paid with a combination of cash, common shares and a convertible debenture

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Image: B2Gold would own approximately 31% direct equity interest in Calibre after completion of the transaction.. Photo: Courtesy of Adam Radosavljevic from Pixabay.

B2Gold and Calibre Mining have signed a binding agreement for B2Gold to restructure its interests in, and for Calibre to acquire, the El Limon and La Libertad Gold Mines, the Pavon Gold Project and additional mineral concessions in Nicaragua.

Calibre would acquire the assets for a purchase price of $100m (£79.5m), paid with a combination of cash, common shares and a convertible debenture.

B2Gold president and chief executive officer Clive Johnson said: “We are pleased to join forces with Calibre in Nicaragua to continue our legacy of 10 years of responsible exploration, development and gold production.

“We are pleased to become a large shareholder of Calibre 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.”

B2Gold would own approximately 31% direct equity interest in Calibre after completion of the transaction.

According to the company, the El Limon and La Libertad mines have produced in excess of 1.4million ounces of gold since 2010 and the combined gold production is projected to be between 150,000 and 160,000 ounces.

Calibre has signed an agreement with Canaccord Genuity and Sprott Capital Partners in respect of a private placement of up to 167,000,000 subscription receipts for gross proceeds of up to CDN$100m (£60m).

The closing of the transaction is subject to certain conditions including majority of minority shareholder approval, the successful negotiation and execution of a definitive agreement by both the comapanies.

Calibre executive chairman Russell Ball said: “We are delighted to be able to partner with B2Gold on the acquisition of the El Limon and La Libertad Mines and welcome B2Gold as a significant shareholder of Calibre.

“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.”