B2Gold (BTO)-T will help finance Calibre Mining’s (CXB-V) exploration activities in Nicaragua by purchasing 20 million Calibre units for $5 million in cash.
The units are priced at 25¢ and are made up of a share and half a warrant, with a strike price of 50¢. The acquisition will give B2Gold a 10.6% stake in Calibre, and its interest can move up to 15.2% a stake if the warrants are exercised.
Calibre says most new capital will go into its Borosi concession in Nicaragua, where both mining companies have been building their names.
B2 has two gold mines in the country: El Limon and La Libertad. Both mines lie west of the capital city of Managua, while Calibre’s Borosi concessions are located 275 km northeast.
Called the “golden triangle,” the traditionally gold-producing region comprises three mining towns: Siuna, Rosita and Bonanza.
The Borosi concessions stretch from the historic Bonanza gold mine southwest towards Siuna, and host three projects in which Calibre holds a 100% stake.
Borosi’s most prominent projects are Cerro Aeropuerto and La Luna.
Cerro Aeropuerto is a gold-silver project with inferred resources of 6 million tonnes grading 3.64 grams gold and 16.16 grams silver, for 3.89 million equivalent oz. gold.
La Luna has inferred resources of 2.5 million tonnes grading 1.56 grams gold and 14.01 grams silver for 1.78 equivalent oz. gold.
B2Gold is Nicaragua’s largest gold producer and is joint ventured with Calibre on the Primavera gold-copper project. Primavera is also located in the mining triangle south of the town of Rosita. B2 can earn a 51% interest in the project and is pursuing a $4-million drill program on the porphyry discovery.
On May 3 — the day the purchase was announced — B2 shares fell 6%, or 22¢ to $3.44 on 5.7 million shares traded, while Calibre shares went up a penny to 21¢ on 573,000 shares traded.
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