Breaking News
0

B2Gold Concludes Sale Of Nicaragua Assets To Calibre Mining

By Zacks Investment ResearchOct 15, 2019 11:17PM ET
www.investing.com/analysis/b2gold-concludes-sale-of-nicaragua-assets-to-calibre-mining-200474124
B2Gold Concludes Sale Of Nicaragua Assets To Calibre Mining
By Zacks Investment Research   |  Oct 15, 2019 11:17PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

B2Gold Corp. (NYSE:BTG) has completed the sale of its two gold mines and assets in Nicaragua to Calibre Mining Corp. for an aggregate consideration of $100 million.

The two concerned gold mines are the El Limon and La Libertad Gold Mines, which the company had acquired in 2009. The deal also includes the Pavon gold project and additional mineral concessions in Nicaragua. Over the past decade, the company has invested more than $560 million in Nicaragua. It has significantly improved operations and economics of the El Limon Mine and constructed a mill facility. It also commenced profitable gold production at the La Libertad Mine and realized significant exploration success around both mines.

Since 2009, these mines have produced more than 1.4 million ounces of gold. For fiscal 2019, gold production from the two mines is expected to be 150,000-160,000 ounces.

Financials of the Deal

B2Gold received an aggregate of 87,986,666 common shares of Calibre, which represents approximately 28.35% of its shares, $40 million in cash, and convertible debentures worth $10 million. Additionally, B2Gold has an option to receive either a cash payment of $10 million or additional shares in Calibre Mining based on the five-day volume weighted average price of Calibre Shares at the time of such payment. However, it is subject to a condition that B2Gold’s holding in Calibre should exceed 31%.

Post-deal, B2Gold holds 93,331,666 shares in Calibre, representing approximately 30.08% stake. This is excluding any shares in Calibre that may be issuable on the conversion of the debentures or the abovementioned additional payment.

Per the investor rights agreement between the two parties, as long as B2Gold holds at least 10% Calibre’s shares, it will have pro rata participation rights and piggyback registration rights. Additionally, for so long as B2Gold holds at least 5% of the Calibre Shares, it has the right to nominate one director to the Calibre’s board of directors, with the initial B2Gold nominee being Dale Craig, vice president, operations.

Given that B2Gold has become Calibre's largest shareholder and with positions on its advisory board and board of directors, the company will remain involved with the Nicaraguan operations. The La Libertad and El Limon Mines have been an important contributor to the local and national economies, accounting for a major percentage of the country's gold exports. Gold currently ranks third in Nicaragua’s main exports.

With Calibre and the combined Nicaraguan management team focusing on these mines and other opportunities in the country, B2Gold will concentrate on optimizing production at its other existing mines in Mali, Namibia and the Philippines. It will also work toward developing its impressive pipeline of development and exploration projects. Additionally, B2Gold will continue to pursue additional greenfield and advanced exploration opportunities.

B2Gold will benefit from efforts to reduce debt and higher gold prices. Further, the Fekola Mine expansion and continued pursuit of growth through exploration, development and expansion of existing projects positions the company well for growth.

B2Gold’s shares have gained 20.0% in the past year, compared with the industry’s growth of 48.6%.

Zacks Rank & Other Key Picks

B2Gold currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Some other top-ranked stocks in the Basic Materials sector are The Scotts Miracle-Gro Company (NYSE:SMG) , Agnico Eagle Mines Limited (NYSE:AEM) and Royal Gold, Inc (NASDAQ:RGLD) . While The Scotts Miracle-Gro Company and Agnico Eagle Mines sport Zacks Rank #1, Royal Gold carries a Zacks Rank #2 (Buy).

Scotts Miracle-Gro has an expected earnings growth rate of 21.3% for fiscal 2019. The company’s shares have surged 38% in the past year.

Agnico Eagle has an estimated earnings growth rate of 158.6% for the current year. Its shares have moved up 41% in the past year.

Royal Gold has a projected earnings growth rate of 82.1% for fiscal 2020. The company’s shares have rallied 48% in a year’s time.

Free: Zacks’ Single Best Stock Set to Double

Today you are invited to download our just-released Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.

This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.

Download Free Report Now >>



Agnico Eagle Mines Limited (AEM): Free Stock Analysis Report

Royal Gold, Inc. (RGLD): Free Stock Analysis Report

B2Gold Corp (BTG): Free Stock Analysis Report

The Scotts Miracle-Gro Company (SMG): Free Stock Analysis Report

Original post
B2Gold Concludes Sale Of Nicaragua Assets To Calibre Mining
 
B2Gold Concludes Sale Of Nicaragua Assets To Calibre Mining

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email