Vancouver – Central Sun Mining (CSM-T, SMC-N) shareholders have given B2Gold‘s (BTO-T, BGLPF-O) takeover of it the green light.
Shareholders representing 57% of outstanding shares voted 99% in favour.
In January B2Gold offered Central Sun shareholders 1.28 B2Gold shares for each Central Sun share, along with a $10 million convertible debenture.
The deal, if approved by the Ontario Superior Court of Justice, would see Central Sun, an operator of two gold mines in Nicaragua, ending up with 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.
If approved, B2Gold, an exploration company with properties in Columbia 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 owns the Limon underground mine where it estimated proven and probable reserves at 1.2 million tonnes grading 5.3 grams gold per tonne.
On news of the vote B2Gold’s share price was holding steady at 61¢ at presstime. The combined company will have 245 million outstanding shares.
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