B2Gold settles into Colombia (February 18, 2008)

Vancouver – In its first major move since debuting on the market in December, B2Gold (BTO-V) has worked a deal with AngloGold Ashanti (AU-N) to get its hands on a significantly increased land package in Colombia while the senior takes a bigger chunk of the young company’s shares.

B2Gold has agreed to issue AngloGold 25 million common shares plus 21.4 million warrants. Of the warrants, 11 million are exercisable at $3.34 and the rest at $4.25; all expire in three years. The transaction will leave AngloGold holding 15.9% of B2Gold’s outstanding shares or 26% of the company on a fully diluted basis.

In exchange for the issuance B2Gold will receive an additional 1,500 sq. km of land hosting several prospective targets surrounding its flagship project, Gramalote. B2Gold’s ownership in the project will also increase significantly: the junior picks up an additional 2% interest as well as AngloGold’s right to acquire a further 24%. If exercised, the right would give B2Gold a 51% interest in the site, making the junior the operator. The junior also takes on responsibility to cover expenditures necessary for a feasibility study at Gramalote by 2010.

The deal doesn’t end there. B2Gold acquires a 100% interest in the Miraflores property, a medium-tonnage, low grade gold occurrence centered around a breccia pipe that has seen limited exploration, and a 100% interest, less a 1% net smelter royalty, in the Mocoa copper-molybdenum deposit. Both Miraflores and Mocoa are also in Colombia.

In the deal AngloGold loses its right to receive 20% of the voting shares of B2Gold’s wholly-owned subsidiary, Andean Avasca Resources, leaving B2Gold with 100% ownership.

Finally, the deal increases the metres of drilling B2Gold must complete to earn its interest in other Columbian properties under its deal with AngloGold. The deal is structured such that B2Gold can pick up and continue exploration on any properties where AngloGold, which holds the largest mineral rights package in Colombia, doesn’t find potential for a large-scale deposit.

The original deal required B2Gold to complete 3,000 metres of drilling; under the new agreement the junior has to complete 5,000 metres of drilling on any target AngloGold sends its way. At that point AngloGold has the right to back in for a 50% interest. If AngloGold does not exercise that right, B2Gold holds the property outright.

In other B2Gold news, the company recently initiated a 5,500-metres diamond drill program on the Quebradona gold property in central Colombia. The 24-sq. km property hosts five gold-rich porphyry systems as indicated in surface rock chips.

And a 25,000-metre drill program is expected to get underway by the end of the month at Gramalote. Previous drilling over 11,000 metres in 38 holes outlined widespread structurally-controlled, intrusive-hosted gold mineralization over a 1-sq. km area. The program will consist of infill drilling in the main Gramalote zone, satellite drilling of prospective outlying targets, metallurgical and geotechnical studies, and resource modeling.

B2Gold is the new exploration vehicle for the former management team from Bema Gold, a junior that grew into an international gold producer before being bought out by Kinross Gold (K-T, KGC-N) for $3.5 billion in February 2007. The company completed its initial purchase offering of 40 million shares at $2.5o a piece and, with $100 million on hand, entered the market in early December.

B2Gold moved up 35 or 18% on the news to close at $2.25 in Feb. 14th trading.