Calibre Mining has signed a $100m binding agreement to acquire the El Limon and La Libertad Gold Mines as well as the Pavon Gold Project and additional mineral concessions in Nicaragua from B2Gold.
Calibre Mining will pay a combination of cash, common shares and a convertible debenture to B2Gold under the terms of the transaction.
Once the deal closes, B2Gold will own an approximate 31% direct equity stake in Calibre and will enable the company to restructure its interests.
The El Limon and La Libertad mine concessions have produced more than 1.4Moz of gold since 2010. The combined gold production of the two Nicaragua mines for this year is projected to be between 150,000oz and 160,000oz.
In connection with the deal, Calibre has signed an agreement with Canaccord Genuity and Sprott Capital to raise C$100m ($76.3m) through a private placement of up to 167,000,000 subscription receipts.
B2Gold president and CEO Clive Johnson said: “With Calibre and the combined Nicaraguan management team focusing on the El Limon and La Libertad Mines and other opportunities, B2Gold will focus on continuing to optimise responsible production at our other existing mines in Mali, Namibia and the Philippines as well as advancing our impressive pipeline of development and exploration projects.
“In addition, B2Gold will continue to pursue additional greenfield and advanced exploration opportunities.”
The transaction is subject to respective shareholder approvals and other customary closing conditions and is expected to close in September or early October.
B2Gold and Calibre Mining are based in Canada.