Author: Kip Keen
Posted: Tuesday , 03 Jun 2014

HALIFAX, NS (MINEWEB) -

B2Gold said it signed a definitive merger agreement with Papillon Resources to merge the companies.

B2Gold is to pay in shares valuing Papillon around A$1.72 a share or $570 million in total. Assuming the deal goes through B2Gold shareholders will own 74 percent of the post deal company and Papillon 26 percent.

The potential deal in recent days generated rumours that were widely disseminated and B2Gold gave a nod to these.

"While the Papillon shares have not been trading since May 23, 2014, the B2Gold share price has fallen since that date due to a combination of the gold price volatility and media speculation surrounding this transaction," B2Gold stated.

Papillon Resources owns the Fekola gold project in Mali and brings some 4.2 million ounces gold @ 2.4 g/t to the table.

B2Gold, which operates several gold mines, said that after it finishes building its Otjikoto project in Namibia, it would focus on constructing Fekola.