Top Stories This Week: Gold M&A Gets Heated as B2Gold, Sabina Announce Deal

B2Gold to buy Sabina, Newcrest rejects Newmont

This week also brought more M&A activity in the gold space. On Monday (February 13), B2Gold (TSX:BTO,NYSEAMERICAN:BTG) announced plans to acquire Sabina Gold & Silver (TSX:SBB,OTCQX:SGSVF) in a deal worth about US$824 million.

B2Gold currently has three operating gold mines in Mali, the Philippines and Namibia, as well as various exploration and development projects in other countries. By purchasing Sabina it would gain access to the company's Back River Gold District in Nunavut, which is made up of five mineral claims, the most advanced of which is called Goose.

"The acquisition of Sabina represents an exciting opportunity to develop the significant gold resource endowment at the Back River Gold District into a large, long life mining complex" — Clive Johnson, B2Gold

Sabina President and CEO Bruce McLeod has commented positively on the transaction, which implies a 45 percent premium on Sabina's TSX closing price as of the date the companies signed a non-binding letter of intent. The purchase is expected to close in the second quarter of this year if all regulatory and shareholder approvals are secured.

"With a two-year construction period until first gold production, we believe that additional value can be unlocked by participating as shareholders of a major gold producer with the northern experience and financial resources to optimize the Goose project and this prolific belt" — Bruce McLeod, Sabina Gold & Silver

B2Gold and Sabina weren't the only gold companies making moves this week. Newcrest Mining (TSX:NCM,ASX:NCM,OTC Pink:NCMGF) rejected advances from Newmont (TSX:NGT,NYSE:NEM), saying that its offer doesn't represent sufficient value for its shareholders. Newcrest has left the door open to an improved bid from Newmont, but so far has not received a response.