VANCOUVER — B2Gold (BTO-T, BGLPF-O) has completed its takeover of Central Sun Mining, following the approval of the deal by Central Sun shareholders.
Shareholders representing 57% of outstanding shares voted 99% in favour.
In January, B2Gold offered 1.28 shares for each Central Sun share, along with a $10-million convertible debenture.
The deal gives former shareholders of Central Sun, which operates two gold mines in Nicaragua, about 33% of the combined company’s shares.
B2Gold’s offer, based on the share price of Central Sun at the time it was extended, valued Central Sun at $41 million.
The offer was a 46% premium in terms of share price over one made a month earlier by Linear Gold (LRR-T, LGCFF-O). Linear did not subsequently submit another bid.
With the completion of the merger, B2Gold, an exploration company with properties in Colombia and Russia, expects initial gold production of 45,000 oz. a year to ramp up to 130,000 oz. by the fourth quarter of 2009.
In addition to the Orosi heap-leach mine, Central Sun brings the Limon underground mine to the combined company. Proven and probable reserves at Limon stand at 1.2 million tonnes grading 5.3 grams gold per tonne.
At presstime, B2Gold shares traded at 66¢. The combined company will have 245 million outstanding shares.
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