Business

Burkina Faso: B2Gold Sells Royalties to Sandbox Royalties

0

(Ecofin Agency) – A few years ago, B2Gold sold two gold assets to Australia’s West African Resources, including the future Kiaka gold mine. The Canadian company had nevertheless retained mining royalties on the assets until then.

B2Gold, a Canadian mining company, has sold its royalties on two gold projects in Burkina Faso to Sandbox Royalties. B2Gold disclosed the sale on June 7, stressing that the projects are held by West African Resources.

The deal includes a 2.7% net smelter return royalty on the Kiaka gold mine, which is currently under construction and expected to produce over 100 tonnes of gold in 18.5 years. The second royalty is on the Toega gold deposit, a satellite project to the Sanbrado gold mine, hosting over one million ounces.

The agreement also includes royalties on gold and copper projects in Colombia and Nicaragua. In return, B2Gold will receive a 33% interest in Sandbox, renamed Versamet Royalties Corporation, valued at $90 million.

“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,” said Clive Johnson, B2Gold’s CEO.

B2Gold owns no mine in Burkina Faso but is active in Africa through its operations at Fekola (Mali) and Otjikoto (Namibia) gold mines.

Source

Zambia’s slow debt restructuring a lesson for other nations

Previous article

Africa vs the world

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Business