Canada’s B2Gold to lead $1.1 billion merger with CGA Mining

Cecilia Jamasmie | September 19, 2012 | 1:35 pm Precious Metals Africa Canada Europe Latin America Gold 
WSJ: Newmont, Barrick merger talks break down

Latin American-focused Canadian miner B2Gold (TSX:BTO) said Wednesday it will buy CGA Mining (TSX:CGA & ASX:CGX) for $1.1 billion to gain access to the Masbate mine, the largest operating gold project in the Philippines.

CGA’s flagship mine is expected to produce 200,000 ounces over the 12-month period ending June 30, 2013, the companies said.

The offer of $3.18 per share represents a premium of 20 per cent to CGA’s Tuesday closing price on the Toronto Stock Exchange.

If it gets the required approvals, the combined firm will have operating mines in Nicaragua and the Philippines and some lesser developed properties in Colombia, Uruguay and Namibia.

“With this transaction, B2Gold has taken a major step towards cementing itself as a leading gold sector consolidator, providing for geographic and operational diversity while contributing significant cash and future cash flow towards B2Gold’s exciting development projects,” chief executive Clive Johnson said in a statement.

The projected joint 2012 production of the two companies is 350,000 ounces, including 200,000 ounces from CGA’s mine in the Philippines.

Mining.com Recommends

Comments

  • luis claro

    Dear Cecilia I will probably send you some fresh information of Andina
    Minerals Inc. ( ADM ,TSX ) , on which we think ( some shareholders well
    informed and established in Chile where the resources are , Volcan
    Project and others ) that the present administration are making very
    big mistakes on continue burning cash of the company with a very
    engineering oriented managment more than a clever business oriented. At the same time we
    have been diluted with new capitalizations bellow book value.

    Who is or whom are commanding this strange view ?
    With what purpose ?
    Are they taking advantage to probably sell it at very low prices
    creating loss for lot of small shareholders and revenues for new investors ?
    Who are approving all this pass and probably new capitalizations and with which kind of real information?
    Regards,

    L.Claro G.

    569-98873007

    562- 6524200

    Stg – Chile

    mail: [email protected]

    • More News