B2Gold Buys Volta Resources, Bolsters Burkina Faso Assets

B2Gold Buys Volta Resources, Bolsters Burkina Faso Assets

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From Proactive Investors

B2Gold Corp. (TSE:BTO)(NYSE MKT:BTG) has agreed to buy Volta Resources (TSE:VTR) in an all-share deal valued at $63 million, adding to its portfolio an advanced stage asset in Burkina Faso as well as two additional exploration projects in the region, as financing becomes increasingly difficult to come by for miners.

Under the terms of the deal, the agreed exchange ratio is 0.15 of a B2Gold share for each share of Volta held, representing a price of roughly 42 Canadian cents per Volta share. This equates to a premium of 106%, based on each respective company’s closing share price on the Toronto Stock Exchange on Friday.

B2Gold will gain an 81% interest in the Kiaka gold project in Burkina Faso, which has the potential for annual average production of 340,000 gold ounces over a 10-year mine life, according to a pre-feasibility study published in May last year.

“Kiaka is a significant, high quality and well defined resource with low technical risk that adds to our portfolio an asset with the potential to contribute meaningfully to B2Gold‘s already impressive future production growth profile,” said president and CEO of B2Gold, Clive Johnson, in a statement released Monday morning.

“Our team has looked at many projects over the last several years and Kiaka stood out as a technically strong asset with low technical risk that in the appropriate gold price environment could be one of B2Gold‘s largest sources of future gold production.”

Read more at proactiveinvestors.com