Calibre Mining has acquired B2Gold’s La Libertad and El Limon gold mines, its Pavon gold project, and additional mineral concessions in Nicaragua for aggregate consideration of $100 million. Production during 2019 at La Libertad is forecast at 95,000 ounces (oz) to 100,000 oz, and production at El Limon during the year is forecast at 55,000 to 60,000 oz.
Calibre paid for the transaction with a combination of cash, Calibre common shares, and a convertible debenture. Following completion of the transaction, B2Gold owns an approximate 30% direct equity interest in Calibre.
Calibre CEO Russell Ball commented, “We look forward to partnering with B2Gold and building on the solid foundation they created over the past decade. Calibre moves forward with quality gold production from two mines that will generate significant free cash flow at current metal prices that we intend to use to fund our extensive, near-mine exploration opportunities to add value and extend mine life.”
Calibre also owns a 100% interest in more than 518 km2 of mineral concessions at the Borosi gold project in northeast Nicaragua.
La Libertad is an open-pit and underground gold mine located approximately 110 km east of Managua, Nicaragua. In 2018, the mine processed 2.25 million metric tons (mt) grading 1.19 grams/mt gold with a recovery rate of 94.4% and produced 80,963 oz of gold. The project, including the surrounding exploration concessions, has numerous excellent exploration targets that can expand the current resource base.
El Limon is also an open-pit and underground mine and is located approximately 100 km northwest of Managua. B2Gold announced a major new high-grade gold discovery at the mine in February 2018, where open-pit mining has commenced on an initial inferred resource of 5.1 million mt grading 4.92 g/mt gold and containing 812,000 oz of gold. With the deposit open along strike and at depth, significant exploration potential remains across the property.
In 2018, El Limon processed 447,961 mt grading 3.64 g/mt gold with a recovery rate of 94.9% and produced 49,629 oz.