In February this year, B2Gold signed a definitive agreement with Sabina to acquire all the issued and outstanding shares of the company, by issuing 0.3867 of its common shares in exchange for each Sabina common share held
Sabina Gold & Silver announced that its shareholders have approved Canadian mining company B2Gold’s proposal to acquire the company for about C$1.2bn ($891m).
Sabina said that about 88.65% of its shareholders, at a special meeting, voted in favour of the special resolution, approving the previously announced takeover bid.
In February this year, B2Gold signed a definitive agreement to acquire all the issued and outstanding shares of Sabina, through a plan of arrangement.
Under the terms of the agreement, the company will issue 0.3867 of its common shares, in exchange for each Sabina common share held.
The exchange rate represents a transaction price of C$1.87 per Sabina Share, which values the company at C$1.2bn, on a fully diluted basis.
Sabina Gold & Silver president and CEO Bruce McLeod said: “Without their backing, and the significant talent of our Sabina employees over the years, the Back River Gold District would not be the world-class asset that it is today.
“I would like to express my sincere appreciation to Sabina’s stakeholders for their support in advancing this incredible project.
“Without their backing and the significant talent of our Sabina employees over the years, the Back River Gold District would not be the world-class asset that it is today.”
Through the acquisition, B2Gold is enabled to diversify its assets with access to Sabina’s fully-owned Back River Gold District in Nunavut, Canada.
Back River is advanced, large, high-grade, district scale, fully permitted with a social license that comprises five mineral claim blocks along an 80km banded iron formation.
BMO Capital Markets and Cormark Securities served as financial advisors, Blake, Cassels & Graydon as Canadian legal counsel, and Skadden, Arps, Slate, Meagher & Flom as US legal counsel to Sabina on the proposed transaction.
Bruce McLeod added: “B2Gold’s involvement as an intermediate producer with greater financial capacity provides additional de-risking of the project and leaves Sabina shareholders with a meaningful stake in the combined Company.
“As an all share-based transaction, the implied value of the offer is $2.20 per share or $1.2 billion (at yesterday’s close). Following the positive outcome of the shareholder vote today, we look forward to working closely with B2Gold to close this transaction on or about April 19, 2023.”