B2Gold Signed New Agreement Towards Sale of Burkina Faso Gold Projects

SEATTLE (Scrap Monster): B2Gold Corp. announced that it has reached a binding agreement with West African Resources (WAF) Limited, by which it will sell 100% of the issued and outstanding shares of Volta Resources (Cayman) Inc. , which holds 81% interest in the Kiaka gold project located in Burkina Faso. The closing of the transaction is subject to certain customary closing conditions.

Under the terms of the agreement, B2Gold will receive a cash payment of $450,000 upon execution of the agreement. Another $45 million will be payable on closing of the transaction, comprised of equal quantities of cash and WAF ordinary shares. Also, $45 million will be paid in cash or shares on the start of construction at the project or completion of a positive feasibility study, whichever is earlier.

According to company press release, B2Gold will receive 2.7% net smelter return royalty interest on the initial 2.5 million ounces of gold produced. The NSR royalty interest will be reduced to 0.45% on the next 1.5 million ounces of gold produced.

Clive Johnson, President and Chief Executive Officer of B2Gold noted that the agreement will build on the strong relationship that it has formed with WAF over the past several years. The company will continue to benefit from the future development of the projects, he added.

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