Canadian mining company B2Gold has agreed to acquire all of the issued and outstanding shares of Sabina Gold & Silver in a deal worth C$1.1bn ($823.66m).

This purchase is expected to help B2Gold diversify its assets with access to the Back River gold district in Nunavut, Canada.

The Back River Gold District comprises five mineral claims blocks along an 80km belt.

Sabina’s fully permitted Goose gold project is the most advanced project in the area.

According to a feasibility study, the project is expected to produce an annual average of 223,000oz of gold. It is expected to have a mine life of 15 years.

As per the agreed terms, B2Gold will issue 0.3867 of a common share for each Sabina common share held, at C$1.87 per Sabina Share on a fully diluted basis.

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The consideration marks a 45% premium to the 20-day volume weighted average prices of B2Gold and Sabina each, as of 10 February 2023, on the TSX.

Upon completion of the deal, existing B2Gold shareholders and former Sabina shareholders will respectively own 83% and 17% of the outstanding shares in B2Gold.

B2Gold president and CEO Clive Johnson said: “The acquisition of Sabina represents an exciting opportunity to develop the significant gold resource endowment at the Back River gold district into a large, long-life mining complex.

“The Back River gold district has multiple high-potential mineralised zones, which remain open, and we are confident that the district has strong untapped upside with numerous avenues for resource growth.”

B2Gold expects the acquisition to increase its reserves by 66% to nine million ounces (Moz) and its measured and indicated resources by 52% to 18.5Moz.

The company currently operates mines in Mali, Namibia and The Philippines.