Sabina Gold & Silver (SBB) has confirmed that its shareholders have approved B2Gold’s proposed acquisition of the company for $891m (C$1.2bn).

The shareholders of Sabina approved B2Gold’s takeover proposal by an ‘overwhelming’ vote of 88.65% while 11.35% voted against it.

Announced in February 2023, the deal is now expected to close by 19 April.

According to the agreement, Canada-based B2Gold will acquire all issued and outstanding SBB common shares via a plan of arrangement.

In exchange, 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.

B2Gold expects the acquisition to help diversify its assets with access to the Back River Gold District in Nunavut, Canada.

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

SBB president and CEO Bruce McLeod said: “Without their backing, and the significant talent of our Sabina employees over the years, the Back River Gold District would not be the world-class asset that it is today.

“B2Gold’s involvement as an intermediate producer with greater financial capacity provides additional de-risking of the project and leaves Sabina shareholders with a meaningful stake in the combined company.

“As an all-share-based transaction, the implied value of the offer is $2.20 per share or $1.2bn.”

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