B2Gold Corp. Sells Interest in Kupol East and West Licenses in Russia to Kinross Gold Corporation
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/22/10 -- B2Gold Corp. (TSX: BTO) ('B2Gold' or the 'Company'), announces it has reached an agreement with Kinross Gold Corporation ('Kinross') to sell to a subsidiary of Kinross, B2Gold's right to acquire an interest in the Kupol East and West Licenses, held by BKWE, B2Gold's wholly owned subsidiary. B2Gold has had the right to acquire and earn in to half of Kinross' interest in these licenses.
In consideration of the acquisition by Kinross of B2Gold's right to acquire an interest in the licenses, Kinross will make an upfront payment of US$33 million to B2Gold, payable upon closing of the transaction and contingent payments of US$15 million for each incremental million ounces of gold of National Instrument 43-101 compliant proven and probable reserves contained by the Kupol East and West License areas, up to a maximum of nine million ounces of gold (100% basis).
In addition, B2Gold will receive payments equal to 1.5% of Net Smelter Returns from the commencement of production from the area covered by the Kupol East and West Licenses, subject to a right for Kinross to repurchase the royalty for US$30 million.
In regards to the transaction, Clive Johnson, President and CEO, commented, 'We view this as a positive transaction for B2Gold. While we are currently in a strong financial position with funding in place and significant cash from mining operations to cover all 2010 projected expenditures, the funds received in this transaction will further strengthen our financial position and enhance our ability to pursue additional acquisitions. We remain of the belief that the Kupol East and West Licenses have great exploration potential. The structure of this agreement with both an upfront payment and the contingent payments and royalty interest ensures that B2Gold will benefit immediately from a significant gain on its investment in this property and continue to benefit from any future exploration success on the licenses, while not having to fund a share of exploration and development costs. In addition, this sale will allow B2Gold's technical teams to further focus on our numerous projects and other acquisitions.'
About B2Gold
B2Gold Corp. is a Vancouver based gold producer with two mines in Nicaragua and a strong portfolio of development and exploration assets in Nicaragua, Colombia and Costa Rica.
B2Gold was founded as a private company in 2007 by the former executive and management team of Bema Gold Corporation. Bema grew from a junior explorer to an international gold producer that was acquired by Kinross Gold Corporation through a Cdn$3.5 billion transaction in February 2007.
In addition to its near term production growth profile, B2Gold's corporate objective is to continue to build further shareholder value through the exploration and development of existing projects and additional accretive acquisitions, capitalizing on the extensive experience and relationships that management has developed over the past 25 years. B2Gold trades on the Toronto Stock Exchange under the symbol 'BTO'.
ON BEHALF OF B2GOLD CORP.
Clive T. Johnson, President and Chief Executive Officer
The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
The Toronto Stock Exchange neither approves nor disapproves the information contained in this News Release.
Contacts:
B2Gold Corp.
Kerry Suffolk
Manager, Investor Relations
604-681-8371
www.b2gold.com