As part of the transaction, B2Gold will sell 10 precious and base metals royalties to Sandbox, which will be renamed Versamet Royalties. Versamet will acquire ownership of the royalties by issuing 153.2 million common shares to B2Gold at a price of C$0.80 per share, giving B2Gold a 33 percent equity stake in Versamet.
Versamet will also gain five other exploration-stage royalties from B2Gold.
“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, president and CEO of B2Gold in a press release outlining the deal. “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.”
Overall B2Gold’s stake in Versamet will be valued at about US$90 million.
The first phase of the transaction closed on June 5, and included the royalties on the Kiaka, Toega and Primavera projects; two exploration-stage royalties were also included in this segment of the deal.
B2Gold received 122 million shares of Versamet worth approximately US$72 million for this phase.
The remaining royalties are subject to various rights of first refusal or right of first offer provisions. These are expected to be resolved within 60 days, at which point the second phase of the transaction can happen.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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