B2Gold (TSX: BTO; NYSE: BTG) is selling its El Limon and La Libertad mines, Nicaragua’s largest gold exporters, along with its Pavon project and other mineral concessions in the country, to
Calibre Mining (TSXV: CXB) in a deal worth US$100 million.
Calibre Mining, in which B2Gold already owns an 11.9% stake, will pay B2Gold US$40 million in cash, US$40 million in common shares valued at 60¢ per share, another US$10 million in cash a year after the transaction closes, and a US$10 million convertible debenture.
The transaction will allow B2Gold to focus on higher margin assets in its portfolio, such as its Fekola mine in Mali, its Otjikoto mine in Namibia, and its Masbate mine in the Philippines, while reducing its overall cash costs, as the Nicaraguan mines are its highest cost producing assets.
Continue reading at The Northern Miner.
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