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Auryx Gold Corp (TSX:AYX,NSX:AYX) announced that it signed a binding agreement with B2Gold Corp.(TSX:BTO,OTCQX:BGLPF) for proposed business combination.
As quoted in the press release:
The combination of B2Gold and Auryx will result in a merged entity holding a 92% interest in the Otjikoto gold project in Namibia, Africa and a 100% interest in two additional exploration projects in Namibia. The Otjikoto gold project has forecast average annual production of over 100,000 ounces of gold over a ten year life of mine based on a Preliminary Economic Assessment released in September 2011 with significant exploration upside. B2Gold is well positioned to progress development at Otjikoto given its strong funding capacity and a management team with significant mine development and operating experience.
Auryx Gold Chief Executive Officer, Tim Searcy stated:
“This business combination delivers an immediate and attractive premium to our shareholders while effectively capitalizing the development of Otjikoto. The Otjikoto project will be in excellent hands with B2Gold, a proven mine builder and operator, that has the financial capacity and the exploration and development expertise to continue to expand and ultimately develop the project to the benefit of all stakeholders. Furthermore, Auryx shareholders will gain exposure to B2Gold’s significant portfolio of production, development, and exploration assets. I am proud of the Auryx team’s hard work and would like to thank the Namibian government and our partners EVI for their continued support in highlighting the value and importance of this project. We look forward to participating in the ongoing success of B2Gold and believe that the exploration potential of Auryx’s properties will be fully revealed in the coming years.”
Click here to read the Auryx Gold (TSX:AYX,NSX:AYX) press release.
Click here to view the Auryx Gold (TSX:AYX,NSX:AYX) profile.