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B2Gold sells royalties to Versamet

The transaction includes a 2.7% NSR royalty on the Kiaka gold project, owned by West African Resources.

The transaction includes a 2.7% NSR royalty on the Kiaka gold project, owned by West African Resources.

6th June 2024

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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Canada-based B2Gold on Thursday announced the sale of a portfolio of ten precious and base metals royalties to Sandbox Royalties, a private, returns-focused metals royalty company that has been renamed Versamet Royalties.

The move, valued at about $90-million, is an opportunity for B2Gold to unlock the value of its royalties, which CEO Clive Johnson said had gone largely unrecognised by the market.

Under the terms of the purchase and sale agreement, Versamet will acquire the royalties in exchange for 153.2-million common shares issued to B2Gold at C$0.80 a share, giving B2Gold a 33% equity interest in Versamet.

The royalties portfolio includes asset such as a 2.7% net smelter return (NSR) royalty on the Kiaka gold project and a 2.7% NSR royalty on the Toega gold deposit, both owned by West African Resources. There is also a 2% net profit royalty on AngloGold Ashanti’s Quebradona project, a 2% NSR royalty on Libero Copper & Gold’s Mocoa project and a 1.5% NSR royalty on Calibre Mining’s Primavera, as well as five additional exploration stage royalties.

B2Gold has retained a 22.5% silver royalty on Glencore’s Hackett River project, while Versamet holds a 2.0% NSR royalty on the same project. B2Gold plans to explore further opportunities to maximise the value of its retained silver royalty.

“As a significant shareholder, B2Gold is pleased to retain meaningful upside exposure and leverage to Versamet as its experienced management team stewards its strengthened asset base and continues executing on its growth strategy to create future shareholder value,” said Johnson.

The first phase of the transaction, which closed on June 5, included the transfer of royalties on the Kiaka gold project, the Toega deposit, the Primavera project, and two exploration stage royalties. In exchange, B2Gold received 122-million shares of Versamet valued at about $72-million.

The second phase, involving the remaining royalties, is expected to close within the next 60 days pending the lapse or exercise of various right of first refusal or right of first offer provisions.

Further, the parties have entered into an investor rights agreement entitling B2Gold to nominate one member to Versamet’s board and to maintain pro rata participation rights in future capital raises.

B2Gold’s strategic partnership will provide ongoing exposure to Versamet’s growing royalty portfolio, which now includes 28 royalties, with several expected to become cash-flowing in the near term.

Edited by Creamer Media Reporter

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