North of 60 Mining News - The mining newspaper for Alaska and Canada's North

B2Gold Corp. April 19 completed a C$1.1 billion (US$820 million) acquisition of Sabina Gold & Silver Corp. and that company's Back River gold project in Nunavut.

The district-scale Back River project includes five claim blocks along an 80-kilometer (50 miles) belt in the Kitikmeot region of western Nunavut.

The most advanced project at Back River is Goose, a fully permitted, construction-ready mine project that is slated to produce 3.34 million oz of gold over 15 years of mining 18.7 million metric tons of proven and probable reserves averaging 5.97 grams per metric ton (3.6 million oz) gold.

Sabina already has all the permits in place to build the Goose Mine detailed in the updated feasibility study and has made significant progress on derisking the operation, including the delivery of mining equipment and the start of underground mining.

With the Goose Mine slated to pour its first gold in 2025 and the exploration upside across the wider property, B2Gold bought out Sabina.

This marks the first major Canadian mine project for B2Gold, which operates mines in Mali, Namibia, and the Philippines. The company also has exploration and development assets in Mali, Colombia, Finland, and Uzbekistan.

"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," said B2Gold President and CEO Clive Johnson. "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."

In addition to adding a near-term gold-producing mine in Canada to its portfolio, B2Gold is excited about the exploration potential its new Nunavut property has to offer.

"The Back River Gold District has multiple high-potential mineralized zones which remain open, and we are confident that the district has strong untapped upside with numerous avenues for resource growth," Johnson said earlier this year.

Overall, the Back River property hosts 33.45 million metric tons of measured and indicated resources averaging 5.88 g/t (6.2 million oz) gold and 13.74 million metric tons of inferred resource averaging 6.44 g/t (2.9 million oz) gold.

The new Back River owner says it is not going to waste any time on expanding and upgrading this resource.

"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," the B2Gold CEO 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 agreement, B2Gold issued Sabina shareholders 0.3876 B2Gold shares in exchange for each Sabina share held.

Sabina Gold & Silver Corp.

Underground development at Goose Mine is being carried out under Sabina's ownership of the Back River gold property.

Based on a 20-day volume weighted average price of the two companies ahead of the February announcement of the buyout, this comes to roughly C$1.87 per Sabina share, for a total consideration of C$1.1 billion.

As a result of the deal, former Sabina shareholders own 17% of the merged company, with current B2Gold shareholders owning the remaining 83%.

Sabina Gold and Silver President and CEO Bruce McLeod handed the keys over to the new Back River owners on April 19.

"I would like to express my sincere appreciation to Sabina's stakeholders for their support in advancing this incredible project," he said following an April 12 shareholder vote approving the buyout. "Without their backing, and the significant talent of our Sabina employees over the years, the Back River Gold District would not be the world class asset that it is today."

Author Bio

Shane Lasley, Publisher

Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.

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