Shareholders have approved the merger of B2Gold and CGA Mining, with 99.94% of those voting in favour of the deal. The transaction is expected to be fully implemented on or about January 31, subject to final court approval and other customary closing conditions, and will result in CGA becoming a wholly-owned subsidiary of B2Gold.
The combination of B2Gold and CGA will result in a merged entity operating the Masbate gold mine in the Philippines, in addition to B2Gold’s existing Limon and La Libertad gold mines in Nicaragua. The Masbate mine is projected to annually produce in the order of 200,000 ounces of gold over the current mine life of 15 years with the potential to extend beyond current projections given the significant exploration upside.
“We are very pleased with the strong endorsement of this transaction from our shareholders. We believe CGA and its flagship Masbate mine offers B2Gold shareholders immediate leverage to a significantly larger combined production profile.
“With this transaction, B2Gold becomes a new intermediate gold producer, achieving geographic and operational diversity while contributing significant cash and future cash flow towards B2Gold’s exciting development projects. We have great respect for what CGA has accomplished at Masbate and look forward to working with this exceptional team,” says B2Gold’s chief executive officer Clive Johnson.
He says B2Gold is well positioned to operate and progress further development at Masbate given its strong funding capacity and a management team with significant exploration, mine development and operating experience.
With the addition of the Masbate mine, B2Gold expects to produce about 385,000 ounces of gold in 2013 and up to 400,000 ounces in 2014. Further, the combined company will possess a strong growth profile through its Otjikoto project in Namibia and its Gramalote joint venture with AngloGold Ashanti in Colombia.
Based on current assumptions the company is projecting annual gold production to grow to more than 700,000 ounces by 2017 assuming development of the Otjikoto and Gramalote projects.