Canadian mining company B2Gold to acquire Sabina Gold & Silver for $824m

B2Gold will acquire Sabina Gold & Silver in a transaction that values the total equity value of the latter at approximately CAD 1.1 billion ($823.66 million) to increase its operational and geographic diversification.

Post-closing, current B2Gold shareholders and former Sabina Gold & Silver‘s shareholders will hold around 83% and 17%, respectively, in the enlarged mining company.

With the proposed acquisition, B2Gold will have production and development assets spanning four continents.

As part of the proposed acquisition, B2Gold will own the Back River Gold District located in southwestern Nunavut, Canada, approximately 520km northeast of Yellowknife.

Sabina Gold & Silver’s 100% owned Back River Gold District spans over 80km of land and hosts five mineral blocks, namely Goose, George, and three underexplored claim blocks – Boulder, Del, and Boot.

The Goose gold project, an advanced first mine in the district, has received all major permits and authorizations for construction and operations.

Canadian mining company B2Gold to acquire Sabina Gold & Silver, the owner of Back River Gold District, for $824m

B2Gold said it will deliver the fully permitted Goose gold project and develop the gold resource endowment at the Back River Gold District into a large, long life mining complex.

The Canadian mining company said the Goose gold mine consists of measured and indicated mineral resources of 5.1 million ounces of gold and inferred mineral resources of 1.8 million ounces of gold.

The Goose gold project, with 15-year life of mine, will produce an average of 223,000 ounces of gold per year with an average annual production of 287,000 ounces over the first five years. This will be from 3.6 million ounces of mineral reserves averaging 5.97 g/t gold, according to a March 2021 updated feasibility study on the gold mining project.

The George gold project is said to include indicated mineral resources of 1.2 million ounces of gold and inferred mineral resources of 1.1 million ounces of gold.

The completion of the acquisition is anticipated in Q2 2023, subject to the satisfaction of certain customary closing conditions.

In 2009, Sabina Gold & Silver acquired the Back River Gold project from Dundee Precious Metals, which remains a stakeholder in the former.