B2Gold Corp. has completed the previously announced all-share acquisition of Sabina Gold & Silver Corp for $890 million. B2Gold now owns Sabina’s Back River Gold District located in Nunavut, Canada. The Back River Gold District consists of five mineral claim blocks along an 80-km belt.
The most advanced project in the district, Goose, is fully permitted, construction ready, and has been de-risked with significant infrastructure currently in place, B2Gold said. The company also said its management team has construction expertise and experience to deliver the Goose project and the financial resources to develop the significant gold resource endowment at the Back River Gold District into a large, long-life mining complex.
“The closing of [this acquisition] represents a milestone for B2Gold as we continue to build a low-cost responsible senior gold mining company,” said Clive Johnson, president and CEO of B2Gold. “We are excited to add such a high-quality, high-grade gold project in a top mining jurisdiction to our global portfolio, and we are thrilled to welcome the exceptional Sabina team into B2Gold. We also look forward to working with the Kitikmeot Inuit Association and local communities as we advance the construction of the Goose project and our development strategy.
“As we continue with the construction of the Goose project and move toward commencement of production in 2025, our exploration program will also start immediately,” Johnson said. “We aim to further define the Back River Gold District’s untapped potential and unlock the significant value we see and opportunities for growth.”
Under the terms of the transaction, Sabina shareholders received 0.3867 B2Gold common shares per Sabina common share. In aggregate, B2Gold will issue approximately 216 million B2Gold shares under the arrangement. The Sabina common shares are expected to be delisted from the TSX on April 21, 2023.