Stock Watch-In the news
Globe says B2Gold's takeover thwarts China's ambitions
2023-02-15 08:18 ET - In the News
See In the News (C-BTO) B2Gold Corp
The Globe and Mail reports in its Wednesday edition that B2Gold's plan to acquire a project in Nunavut for $1.1-billion is blocking expansion plans at one of China's largest gold producers. The Globe's Andrew Willis writes that B2Gold launched a friendly takeover bid for Sabina Gold & Silver on Monday aimed at winning control of properties that contain some of the world's highest-grade undeveloped gold projects. Sabina forecasts its first mine will open in 2025, at a cost of $750-million, and produce gold for 15 years. If B2Gold's offer is successful, the company will buy out Zhaojin Mining's holding, one of Sabina's largest shareholders with a 7.4-per-cent holding, and thwart the Chinese company's global ambitions. In 2017, Zhaojin bought an initial stake in Sabina for $66-million, buying stock at $2.65 per share. At the time, Zhaojin's 25 mines and its smelting operations were located in China and company executives said their goal was to double production within a decade by making international acquisitions. Last June, Zhaojin invested another $12-million in Sabina. Zhaojin has yet to comment on B2Gold's offer. Ottawa has recently blocked Chinese investments in Canadian mining juniors, including TMAC Resources.
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