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C$1.2bn takeover by B2Gold wins Sabina shareholders’ support

13th April 2023

By: Mariaan Webb

Creamer Media Contract Publishing Editor

     

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Shareholders of Sabina Gold & Silver have voted in favour of the company’s proposed acquisition by B2Gold for C$1.2-billion.

The arrangement resolution was approved by 88.65% of the votes cast by shareholders at a special meeting on Wednesday, with the turnout at 73.01%.

“I would like to express my sincere appreciation to Sabina’s stakeholders for their support in advancing this incredible project,” said president and CEO Bruce McLeod.

“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. B2Gold’s involvement as an intermediate producer with greater financial capacity provides additional de-risking of the project and leaves Sabina shareholders with a meaningful stake in the combined company.”

As an all-share-based transaction, the implied value of the offer is C$2.20 a share, or C$1.2-billion at Tuesday’s close.

Following the positive outcome of the shareholder vote, McLeod said that Sabina would be working closely with B2Gold to close the transaction on April 19.

The acquisition of Sabina represents an opportunity for B2Gold to develop the significant gold resource endowment of the Back River gold district, which the company believes has strong untapped upside.

The Back River gold district consists of five mineral claims blocks along an 80 km belt. The most advanced in the district, Goose, is fully permitted and construction ready. A March 2021 updated feasibility study on the Goose project outlined a 15-year life-of-mine, producing an average of 223 000 oz/y of gold from 3.6-million ounces of mineral reserves averaging 5.97 g/t.

 

Edited by Creamer Media Reporter

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