Canada-based B2Gold has reported a sale of a portfolio of ten precious and base metals royalties valued at $90 million to Versamet Royalties in exchange for 153.2 million common shares of the latter.
According to B2Gold’s CEO Clive Johnson cited by Mining Weekly, the sale presents an opportunity for B2Gold to unlock the value of its royalties that had gone largely unrecognised by the market. The move will also make B2Gold a major shareholder of Versamet with a 33% stake.
“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,” Johnson said.
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.
Theodor Lisovoy, Editor in Chief, Rough&Polished
