(Ecofin Agency) – A few years ago, B2Gold sold two gold assets to the Australian West African Resources, including the future Kiaka gold mine. The Canadian company had nevertheless retained mining royalties on the assets until then.
Mining royalty company Sandbox Royalties will acquire royalties held by B2Gold in Burkina Faso. This is the announcement made on June 7 by the Canadian mining company which specifies that these are two gold projects held by West African Resources.
In detail, B2Gold cedes a 2.7% royalty on net smelter revenues from the Kiaka gold mine under construction. Once in production by 2025, the latter should deliver more than 100 tonnes of gold in 18.5 years. A second royalty of 2.7% on net smelter revenues is also planned for the Toega gold deposit, a satellite to the Sanbrado gold mine and hosting more than a million ounces.
Note that other royalties on gold and copper projects located in Colombia and Nicaragua are also included in the agreement. In return for the sale of these various royalties, B2Gold will obtain approximately 33% interest in Sandbox, renamed Versamet Royalties Corporation as part of the transaction. B2Gold’s 33% stake in the company is valued at $90 million, the statement said.
“This strategic partnership provides B2Gold with an exciting opportunity to unlock the value of our royalties which have not been recognized by the market and were not a core part of our business“, explains Clive Johnson, CEO of the company.
As a reminder, B2Gold does not own any mines in Burkina Faso. The company is active in Africa on the Fekola (Mali) and Otjikoto (Namibia) gold mines.
Also read:
02/28/2024 – The Australian West African Resources wants to produce more than 100 tonnes of gold in Burkina Faso, between 2024 and 2033
