Consolidation of Gramalote Project by Acquiring AngloGold Ashanti’s 50% Stake
B2Gold Corporation (“B2Gold”)
Registration No. BC0776025
Registered as an external company in Namibia
ISIN Code: CA11777Q2099
NSX Share Code: B2G
B2Gold to Consolidate Gramalote Project by Acquiring AngloGold Ashanti’s 50%
Stake
Vancouver, BC, September 18, 2023 – B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG,
NSX: B2G) (“B2Gold” or the “Company”) is pleased to announce that is has entered into a
purchase agreement with AngloGold Ashanti Limited (“AngloGold”) to acquire AngloGold’s
50% stake in the Gramalote project (the “Transaction”), located in the Department of
Antioquia, Colombia (the “Gramalote Project”). Upon completion of the Transaction, B2Gold
will own 100% of the Gramalote Project.
Transaction Highlights
• Consolidates the Gramalote Project under one owner, providing additional
optionality to analyze lower capital intensity, higher-return development
opportunities for the Project: Historically, the Gramalote Project has been advanced
under a joint venture between B2Gold and AngloGold, which has led to analyzing the
project on a larger scale basis to provide meaningful production growth to both
companies. Under a single owner, different development opportunities will be
assessed with the goal of delineating a project that maximizes the return for B2Gold as
sole owner of the Gramalote Project.
• Accretive to B2Gold shareholders on a total gold resource per share basis: With
the Transaction, B2Gold will add 2.11 million gold ounces of Indicated Mineral
Resources and 0.74 million gold ounces of Inferred Mineral Resources to the
Company’s consolidated Mineral Resource base.
• B2Gold’s in-house projects team to commence work on various smaller scale
project development plans, with the goal of identifying a higher-return project
than the previously contemplated joint venture development plan: Based on the
results of the 2022 Gramalote feasibility study, the contemplated larger scale project
did not meet the combined investment return thresholds for development by both
B2Gold and AngloGold. B2Gold plans to commence a detailed review of the Gramalote
Project, including the facility size and location, power supply, mining and processing
options, tailings design, resettlement, potential construction sequencing and camp
design to identify potential cost savings to develop a smaller scale project. The results
of the review will allow the Company to determine the optimal parameters and
assumptions for a formal study, to commence in the fourth quarter of 2023, with the
goal of completing an initial assessment by the end of the second quarter of 2024.
Transaction Terms and Conditions
Under the terms of the Transaction, the purchase price will be paid in cash and consist of the
following payments to AngloGold based on, and contingent upon, certain milestones:
• US$20 million upon closing of the Transaction;
• US$10 million upon B2Gold announcing a construction decision at the Gramalote
Project;
• US$10 million upon commercial production at the Gramalote Project, contingent on
commercial production beginning within five years of closing of the Transaction;
o If commercial production does not commence within five years of closing of the
Transaction, no payment will be made;
• US$10 million on the first anniversary of commercial production at the Gramalote
Project; and
• US$10 million on the second anniversary of commercial production at the Gramalote
Project.
Upon completion of the Transaction, the structure of the Transaction immediately adds to
B2Gold’s consolidated Mineral Resource base and significantly increases the Company’s
exposure to the upside from the potential development of the Gramalote Project, while still
providing ongoing exposure to AngloGold through the contingent payments, which make up
the majority of the purchase price. The Transaction is in line with B2Gold’s strategy of
executing on accretive opportunities, increasing Mineral Reserves and Resources and
continuing to advance development projects.
The B2Gold Board of Directors has unanimously approved the Transaction. The Transaction
is subject to South African Reserve Bank approval and the satisfaction of customary closing
conditions. Subject to the satisfaction of these conditions, B2Gold expects that the Transaction
will be completed in the fourth quarter of 2023.
The full announcement can be viewed at the following link:
https://www.b2gold.com/news/b2gold-to-consolidate-gramalote-project-by-acquiring-anglogold-
ashantis-50-stake
On Behalf of B2GOLD CORP.
Clive T. Johnson
President & Chief Executive Officer
19 September 2023
Registered Office
20 Nachtigal Street
Ausspannplatz
Windhoek
Namibia
Sponsor
IJG Securities (Pty) Ltd
Member of the NSX
4th floor 1@Steps,c/o Grove and Chasie Street
Kleine Kuppe, Windhoek
P O Box 186, Windhoek, Namibia
Registration No. 95/505
Date: 19-09-2023 09:41:00
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