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B2Gold Corp. (TSX:BTO) and CGA Mining Ltd. (TSX:CGA) announced that B2Gold will buy CGA for C$1.1 billion to create a merged company that will operate — among other projects — the Philippines-based Masbate gold mine, which is slated to produce 200,000 ounces of gold from June 2012 to June 2013.
B2Gold Corp. (TSX:BTO) and CGA Mining Ltd. (TSX:CGA) announced that B2Gold will buy CGA for C$1.1 billion to create a merged company that will operate — among other projects — the Philippines-based Masbate gold mine, which is slated to produce 200,000 ounces of gold from June 2012 to June 2013.
As quoted in the press release:
[T]he agreed exchange ratio of 0.74 B2Gold common shares for each CGA share held … represents a purchase price of approximately C$3.18 per CGA share and a premium of 22% using the 20 day volume weighted average share price of each respective company, and a 26% premium over the CGA closing share price on September 17, 2012 based on the closing price for the B2Gold shares as of such date.
The combination of B2Gold and CGA will result in a merged entity operating the Masbate gold mine in the Philippines, in addition to B2Gold’s existing Limon and La Libertad gold mines in Nicaragua. The Masbate gold mine will produce in the order of 200,000 ounces of gold over the twelve month period ending June 30, 2013.
Further, the combined company will possess a strong growth profile through its Otjikoto project in Namibia and its Gramalote joint venture (51% AngloGold Ashanti/49% B2Gold) project in Colombia.
Click here to read the full B2Gold Corp. (TSX:BTO) and CGA Mining Ltd. (TSX:CGA) press release.