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Wednesday, 4th February 2009 (1859 views)

B2Gold has announced that it has agreed a deal to purchase Central Sun Mining for CN$66.8 million (£37.5 million).

Vancouver-based B2Gold will issue 1.28 shares for each share in Central Sun, a 45 per cent premium on the firm's closing price on January 26th 2009.

The two companies have signed a binding agreement to combine their businesses and commence with initial production of around 45,000 ounces of gold per year.

Production of approximately 130,000 ounces of gold is planned by B2Gold following the completion of the Orosi mill project scheduled for the fourth quarter of 2009.

Clive Johnson, B2Gold president and chief executive, commented: "We are pleased to have signed this agreement, which has received enthusiastic market support and upon completion will immediately transform B2Gold into a producing gold company."

The Central Sun board of directors has unanimously recommended that shareholders vote in favour of the transaction.

Based in Toronto, Central Sun has mining and exploration properties focused in Nicaragua, including the Limon and Orosi mines.

 

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