B2Gold Corp. owns Volta Resources Inc., which is the holder of an 81% interest in the Kiaka gold project located in Burkina Faso. (Photo: Volta Resources)

B2Gold Corp. entered into a binding agreement with West African Resources Ltd. to sell 100% of the issued and outstanding shares of Volta Resources (Cayman) Inc., the holder of an 81% interest in the Kiaka gold project located in Burkina Faso. B2Gold will receive a cash payment of US$450,000 at the execution of the agreement; US$45 million (50% cash and 50% WAF shares) payable on closing of the transaction; and US$45 million in cash or WAF shares payable on the earlier of either the commencement of construction at Kiaka, completion of a positive feasibility study for Kiaka, or October 25, 2022. It will also receive a 2.7% net smelter return (NSR) royalty interest on the first 2.5 million ounces (oz) of gold produced from Kiaka, and a 0.45% NSR royalty interest on the next 1.5 million oz of gold produced.

The closing of the Kiaka transaction is subject to certain customary conditions, including completion of a transaction between WAF and GAMS-Mining F&I Ltd., where WAF will acquire GAMS’ 9% interest in the Kiaka project, and completion of the transaction under the amended Toega agreement. The parties expect the Kiaka transaction to be completed by the end of November.

“We are pleased to have reached an agreement with WAF relating to the sale of the Kiaka project, building on a strong relationship that we have formed with WAF over the past several years following the initial agreement relating to the Toega project,” B2Gold President and CEO Clive Johnson said. “WAF has a strong reputation of being a solid operator in Burkina Faso and with its existing local infrastructure and operating experience is well positioned to move the Kiaka project forward in a timely and cost-effective manner.”

B2Gold, through the WAF shares, will have royalties on both the Kiaka and Toega projects, Johnson said.

B2Gold also entered into an amended and restated purchase agreement with WAF and GAMS to sell to WAF 100% of the shares of Kiaka Gold SARL, the holder of the Toega gold project located in Burkina Faso and GAMS will sell its 10% beneficial interest in the Toega project. B2Gold holds a 90% beneficial interest in the Toega Project with GAMS holding the remaining 10%. B2Gold will receive a cash payment of US$18 million, US$9 million of which has been received, and on the first 1.5 million oz of gold produced at Toega, a 2.7% NSR royalty until such time as the royalty payments total US$22.5 million and thereafter a 0.45% NSR royalty interest. The parties expect the Toega transaction to be completed by the end of November.

B2Gold has operating gold mines in Mali, Namibia and the Philippines, and numerous exploration and development projects in various countries including Mali, Colombia, Burkina Faso, Finland and Uzbekistan. B2Gold forecasts total consolidated gold production of between 1,015,000 and 1,055,000 oz in 2021.

 

 

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