B2Gold brings Calibre Mining on board at its Nicaragua gold mines
Gold miner B2Gold Corporation will sell its Nicaraguan assets to Calibre Mining Corporation in exchange for a holding in Calibre.
Calibre will acquire B2Gold’s producing El Limon and La Libertad gold mines, the Pavon gold project and additional mineral concessions held by B2Gold in Nicaragua, for $100-million in cash, common shares and a convertible debenture.
Following the transaction, B2Gold will own about a 31% direct equity interest in Calibre.
B2Gold president and CEO Clive Johnson said in a statement on Tuesday that, with Calibre and the combined management team focusing on the El Limon and La Libertad mines, B2Gold would focus on continuing the optimisation of its existing mines in Mali, Namibia and the Philippines.
Calibre’s management team will include CEO Russel Ball, senior VP and COO Darren Hall, senior VP and CFO John Seaberg, exploration VP Greg Smith and corporate development VP Ryan King. The team will be assisted by Newmarket Gold founders, including Blayne Johnson and Douglas Forster, while B2Gold will nominate a board representative in due course.
Meanwhile, in connection with the transaction, Calibre has entered into an agreement with Canaccord Genuity Corporation and Sprott Capital Partners in respect of a private placement of up to 167-million subscription receipts for gross proceeds up to C$100-million.
Calibre intends to graduate to the TSX from its current TSX-V listing.
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