Vancouver-based B2Gold Corporation has announced a significant transaction. The company sold a portfolio of ten precious and base metals royalties. Sandbox Royalties Corp, now renamed Versamet Royalties Corporation, is the buyer.
Details of the Agreement
Under the agreement, Versamet acquires the royalties. In exchange, Versamet issues 153.2 million common shares to B2Gold. These shares are priced at C$0.80 each. The total value of the equity interest is approximately $90 million.
Breakdown of the Royalties Sold
The royalties involved in the transaction are detailed below:
| Project Name | Owner | Royalty Type | Percentage |
|---|---|---|---|
| Kiaka Gold Project | West African Resources Ltd. | NSR | 2.7% |
| Toega Gold Deposit | West African Resources Ltd. | NSR | 2.7% |
| Quebradona Project | AngloGold Ashanti Ltd. | Net Profit | 2.0% |
| Mocoa Project | Libero Copper & Gold Corp. | NSR | 2.0% |
| Primavera Project | Calibre Mining Corp. | NSR | 1.5% |
| Five exploration stage royalties | Various owners | NSR/Net Profit | Various |
Retained and Separate Royalties
B2Gold retains its 22.5% silver royalty on Glencore’s Hackett River project. Versamet separately owns a 2.0% NSR royalty on the same project. B2Gold will continue exploring options for its retained royalty.
Strategic Partnership and Market Impact
Clive Johnson, President and CEO of B2Gold, highlighted the strategic benefits. The partnership allows B2Gold to unlock the value of its royalties. These royalties were not core to B2Gold’s primary business.
Quotes from B2Gold’s CEO
Johnson stated, “This strategic partnership provides B2Gold with an attractive opportunity.” He emphasized that the royalties were largely unrecognized by the market. “We are pleased to retain meaningful upside exposure and leverage to Versamet,” Johnson added.
Transaction Phases and Future Expectations
The transaction occurs in two phases. The first phase closed on June 5, 2024. This phase included the Kiaka Gold Project, Toega Gold Deposit, Primavera Project, and two exploration stage royalties. B2Gold received 122.0 million shares of Versamet, valued at $72 million.
Second Phase Details
The second phase will involve the remaining royalties. These are subject to right of first refusal or right of first offer provisions. These provisions are expected to lapse or be exercised within 60 days.
Investor Rights Agreement
An Investor Rights Agreement was signed during the first phase closing. This agreement entitles B2Gold to nominate one member to Versamet’s Board of Directors. B2Gold also gains pro rata participation rights for future capital raises.
Versamet’s Strengthened Portfolio
Versamet now holds a total of 28 royalties. Two of these are currently cash flowing, with several more expected to cash flow soon. This diversified portfolio strengthens Versamet’s asset base.