B2Gold Corp. plans to purchase AngloGold Ashanti Ltd.’s 50% stake in the Gramalote project, located in Colombia, which will give it full ownership of the project. The $60 million transaction will add 2.11 million ounces (oz) of gold as indicated mineral resources and 740,000 oz of gold as inferred mineral resources to the company’s consolidated mineral resource base.

B2 Gold said it will assess different development opportunities for the project. The 2022 Gramalote feasibility study contemplated a larger-scale project, but it did not meet the combined investment return thresholds for development by both B2Gold and AngloGold. B2Gold plans to commence a detailed review of the project, including the facility size and location, power supply, mining and processing options, tailings design, resettlement, potential construction sequencing, and camp design to identify potential cost savings to develop a smaller-scale project. It said it hopes to complete an initial assessment by the end of Q2 2024.

The transaction is expected to close during Q4 2023.