B2Gold to sell its Burkina Faso gold projects to West African Resources
(Kitco News) - B2Gold (TSX: BTO) announcedMonday that it has entered into a binding agreement with West AfricanResources, pursuant to which B2Gold has agreed to sell to WAF 100% of theissued and outstanding shares of Volta Resources, the holder of an 81% interestin the Kiaka gold project located in Burkina Faso.
Under the terms of the KiakaAgreement, B2Gold said it will receive the following consideration, including cashpayment of US$450,000 paid on execution of the Kiaka Agreement, and US$45,000,000payable on closing of the Kiaka Transaction, comprised of 50% cash and 50% inWAF ordinary shares.
Additionally, B2Gold willreceive US$45,000,000 payable on the earlier of (i) commencement ofconstruction at the Kiaka Project, (ii) completion of a positive feasibilitystudy at the Kiaka Project, and (iii) October 25, 2022, in cash or WAF ordinaryshares, at B2Gold's option but subject to any required WAF shareholder approvalto issue WAF ordinary shares.
Importantly, B2Gold willreceive 2.7% net smelter return ("NSR") royalty interest on the first2,500,000 ounces of gold produced at the Kiaka Project, and a 0.45% NSR royaltyinterest on the next 1,500,000 ounces of gold produced at the Kiaka Project.
In addition, B2Gold hasentered into an amended and restated purchase agreement, pursuant to whichB2Gold has now agreed to sell to WAF 100% of the shares of Kiaka Gold SARL, theholder of the Toega gold project located in Burkina Faso.
Under the terms of theAmended Toega Agreement, B2Gold will receive a cash payment of $18,000,000(US$9,000,000 of which has been received), and on the first 1,500,000 ounces ofgold produced at the Toega Project, a 2.7% NSR royalty until such time as theroyalty payments total US$22,500,000 and thereafter a 0.45% NSR royaltyinterest.
B2Gold is an internationalsenior gold producer headquartered in Vancouver, Canada. Founded in 2007,today, B2Gold has operating gold mines in Mali, Namibia and the Philippines,and numerous exploration and development projects in various countriesincluding Mali, Colombia, Burkina Faso, Finland and Uzbekistan.
By Vladimir BasovFor Kitco News
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