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Thursday, Jul 25, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Mining

B2Gold takes 33% stake in Versamet through royalty portfolio sale

Royalties are dispersed in projects held by West African Resources, AngloGold Ashanti, Libero Copper & Gold and Calibre Mining

B2Gold takes 33% stake in Versamet through royalty portfolio sale
B2Gold is selling a 1.5 per cent net smelter royalty on Calibre Mining's Primavera project in Nicaragua. Photo: Calibre Mining Corp

Canada’s multinational miner B2Gold Corp. (TSX: BTO) is selling a sizeable portfolio of royalties to Versamet Royalties Corporation in a C$123.75 million deal.

B2Gold announced that it would receive over 150 million shares of Versamet this week in exchange for the package. It includes net smelter return royalties ranging between 1.5 per cent and 2.7 per cent on a series of properties in Africa and South America. Furthermore, the miner will obtain unspecified royalties on five unidentified exploration-stage assets.

The companies holding the operations with active royalties are West African Resources, Ltd. (ASX: WAF), AngloGold Ashanti PLC (NYSE: AU), Libero Copper & Gold Corp (TSX-V: LBC) and Calibre Mining Corp (TSX: CXB) (OTCQX: CXBMF).

“This strategic partnership provides B2Gold with an attractive opportunity to unlock the value of our royalties which have gone largely unrecognized by the market and were not a core part of our business,” B2Gold chief executive Clive Johnson said.

The first phase of the transaction, which included the transfer of royalties on West African and Calibre’s sites, closed on Wednesday. The remainder will be finalized within the next 60 days. Versamet’s name was Sandbox Royalties prior to B2Gold taking a major interest. Subsequently, the parties decided to change the company name, thereby reflecting the importance of the new partnership.

Read more: Calibre Mining pulls promising high grades from Valentine Lake Sheer Zone

Read more: Calibre Mining displays sustainability successes with new report

Versamet holds diverse international portfolio

In addition to the royalty company’s newly acquired and soon to be obtained assets, Versamet has interests in projects throughout Canada, Europe, Mexico and the United States.

These include a 1.26 per cent stream on Ontario’s Greenstone mine run by Equinox Gold Corp. (TSX: EQX); a 2 per cent net smelter royalty (NSR) on the Mercedes gold-silver operation held by Bear Creek Mining Corporation (TSX-V: BCM) in Mexico; and a 1 per cent NSR on Nevada’s Converse precious metals project in Waterton Global Resource Management’s possession.

Versamet expects to generate over C$13.5 million from its royalty assets this year.

Last month, B2Gold made a significant achievement by completing the ice road enabling access to and from its Goose gold mine in Nunavut’s Back River district.

 

Calibre Mining is a sponsor of Mugglehead news coverage 

 

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