B2Gold sells Burkina Faso projects to West African
Canadian bullion miner B2Gold will sell its Kiaka project, in Burkina Faso, to Australia-listed West Africa Resources (WAF) for cash and shares, the company announced on Monday.
B2Gold will sell 100% of Volta Resources, the holder of an 81% interest in the Kiaka gold project, for $450 000 in cash paid upon execution of the agreement, $45-million (50:50 split between cash and shares) on closing, and $45-million (in cash or shares) on the earlier of the start of construction at the project or completion of a positive feasibility study.
B2Gold would also receive a 2.7% net smelter return (NSR) royalty interest on the first 2.5-million ounces of gold produced, reducing to 0.45% on the next 1.5-million ounces.
WAF has a strong reputation of being a solid operator in Burkina Faso, said B2Gold CEO Clive Johnson.
“With its existing local infrastructure and operating experience, [WAF] is well positioned to move the Kiaka project forward in a timely and cost-effective manner,” he said, noting that through its shareholding in WAF and royalties, B2Gold would continue to benefit from the future development of Kiaka and Toega.
B2Gold has entered into an amended and restated agreement with WAF and GAMS-Mining F&I, pursuant to which it had agreed to sell to WAF 100% of the shares of Kiaka Gold, the holder of the Toega project.
B2Gold would receive a cash payment of $18-million, half of which had been received, on the first 1.5-million ounces produced at Toega, a 2.7% NSR until such time as the royalty payments total $22.5-million and thereafter a 0.45% NSR royalty interest.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation