VANCOUVER _
B2Gold Corp. (
TSX: T.BTO,
Stock Forum) has an all-stock deal to acquire an advanced gold project and two exploration projects in Africa through a friendly takeover of
Volta Resources Inc. (
TSX: T.VTR,
Stock Forum).
Vancouver-based B2Gold says its offer values Volta's equity at US$63 million, more than double the Toronto-based company's recent market value.
B2Gold is offering 0.15 share _ about 42 cents per Volta share based on Friday's closing price.
Volta's stock closed Friday at 20.5 cents and B2Gold's closed at $2.81 at the Toronto Stock Exchange.
B2Gold said Volta's Kiaka gold project in Burkino Faso has the potential to produce 340,000 ounces of gold, on average.
Volta has an 81 per cent stake in Kiaka and 100 per cent ownership of the two exploration projects, also in Burkino Faso.
The Kiaka gold project has the potential to sustain a production rate of about 340,000 ounces gold annually for a 10-year mine life,
B2Gold said in a press release.
“This acquisition significantly enhances our gold leverage with the addition of Kiaka gold project,’’ said B2Gold President and CEO Clive Johnson.