B2Gold Announces Sale of C$139 Million of Calibre Mining Shares

Rhea-AI Summary

B2Gold Corp. (BTG) has sold 79,000,000 common shares of Calibre Mining Corp., generating C$139.04 million in gross proceeds through a block trade. This transaction reduces B2Gold's ownership in Calibre from 14.1% to less than 10%, meaning it is no longer a 'reporting insider' under National Instrument 55-104. B2Gold's decision was driven by investment considerations such as price, market conditions, capital allocation priorities, and corporate strategy. Despite the sale, B2Gold remains a supportive shareholder of Calibre.

Positive

• Generated C$139.04 million in gross proceeds from the sale of Calibre shares.
• Successfully executed the transaction in alignment with capital allocation priorities and corporate strategy.

Negative

• Reduced ownership in Calibre from 14.1% to less than 10%, losing 'reporting insider' status.
• Potentially reduced influence in Calibre Mining due to decreased shareholding.

Insights

Financial Analyst

B2Gold’s sale of Calibre Mining shares signals a strategic portfolio adjustment. This transaction resulted in gross proceeds of C$139.04 million, which will enhance B2Gold’s liquidity. By reducing its stake to below 10%, B2Gold also simplifies its reporting obligations, likely saving administrative costs. The sale suggests B2Gold might redirect capital to higher-priority ventures or debt reduction.

For investors, this move could indicate B2Gold’s intention to refocus on core operations or other promising investments. Maintaining a supportive stance toward Calibre while divesting a substantial share shows that B2Gold sees no immediate downside in Calibre’s performance but prefers a more flexible capital strategy.

Market Research Analyst

The sale of shares by B2Gold impacts market perception of both companies. Reducing its stake in Calibre Mining might be perceived as a signal of B2Gold’s reassessment of Calibre’s future potential. However, B2Gold’s assurance of remaining a supportive shareholder mitigates potential negative sentiment.

For Calibre Mining, the change in shareholders could introduce new dynamics, possibly affecting its stock volatility in the short term. For B2Gold, the influx of cash strengthens its balance sheet, providing potential for future investments or returns to shareholders through dividends or buybacks.

Corporate Strategy Expert

B2Gold’s strategic divestment aligns with a focus on corporate agility. The sale aids in capital reallocation without severing ties with Calibre Mining, suggesting a balanced approach to investment and partnership. This maneuver could be viewed as a way to optimize returns while maintaining a strategic foothold in Calibre.

Long-term, this action frees up capital which could be deployed into projects with higher expected returns or critical areas needing investment. Retail investors may see this as a sign of proactive management aiming for robust financial health and opportunistic growth strategies.

VANCOUVER, British Columbia, June 21, 2024 (GLOBE NEWSWIRE) -- B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G) (“B2Gold” or the “Company”) announces that it has sold an aggregate 79,000,000 common shares of Calibre Mining Corp. (“Calibre”) in the ordinary course for investment purposes by way of a block trade (the “Transaction”) for aggregate gross proceeds of C$139.04 million.

B2Gold will be filing an early warning report under National Instrument 62-103 in connection with the sale of the Calibre shares, a copy of which will be available under Calibre’s profile on SEDAR+ at www.sedarplus.com.

Immediately prior to the Transaction, B2Gold owned 110,950,333 common shares of Calibre representing approximately 14.1% of Calibre. As a result of the Transaction, B2Gold’s ownership has decreased to less than 10% of the issued and outstanding common shares of Calibre and B2Gold has ceased to be a “reporting insider” as defined in National Instrument 55-104 – Insider Reporting Requirements. Accordingly, B2Gold will no longer file insider or early warning reports in respect of its ownership of securities of Calibre, except as required by applicable law.

B2Gold’s decision to dispose of the common shares of Calibre pursuant to the Transaction was made as a result of investment considerations including price, market conditions, capital allocation priorities, and corporate strategy. B2Gold remains a supportive shareholder of Calibre and does not currently plan to make any additional changes to its interest.

About B2Gold

B2Gold is a low-cost international senior gold producer headquartered in Vancouver, Canada. Founded in 2007, today, B2Gold has operating gold mines in Mali, Namibia and the Philippines, the Goose Project under construction in northern Canada and numerous development and exploration projects in various countries including Mali, Colombia and Finland.

ON BEHALF OF B2GOLD CORP.

“Clive T. Johnson” 
President and Chief Executive Officer

The Toronto Stock Exchange and NYSE American LLC neither approve nor disapprove the information contained in this news release.  

FAQ

What was the total gross proceeds from B2Gold's sale of Calibre shares?

B2Gold generated C$139.04 million in gross proceeds from the sale of 79,000,000 Calibre shares.

How much did B2Gold's ownership in Calibre decrease after the sale?

B2Gold's ownership in Calibre decreased from 14.1% to less than 10%.

What prompted B2Gold to sell its Calibre shares?

B2Gold sold the shares based on investment considerations, including price, market conditions, capital allocation priorities, and corporate strategy.

What is the significance of B2Gold no longer being a 'reporting insider'?

As a result of the transaction, B2Gold's ownership fell below 10%, eliminating the requirement to file insider or early warning reports under National Instrument 55-104.