B2Gold Corp. (TSX:BTO)(OTCQX:BGLPF)(PINKSHEETS:BGLPF)(NAMIBIAN:B2G)
("B2Gold" or the "Company"), is pleased to announce its gold
production and revenue for the third quarter of 2012. All dollar
figures are in United States dollars unless otherwise
indicated.
Highlights
-- Record gold revenue of $67.1 million
-- Record gold production of 42,156 ounces, ahead of budgeted guidance of
39,517 ounces of gold
-- Record gold sales of 39,668 ounces
-- Mining permit received for the Jabali Central deposit on La Libertad
property in Nicaragua
Third Quarter 2012 Gold Production
B2Gold's consolidated gold production for the third quarter of
2012 from La Libertad and Limon Mines in Nicaragua was a record
42,156 ounces of gold, ahead of budgeted guidance of 39,517 ounces
of gold and 5,353 ounces higher than the second quarter production
of 36,803 ounces of gold. As previously indicated, gold production
is expected to increase each successive quarter of 2012.
La Libertad Mine continued to perform well in the third quarter
of 2012, producing 29,441 ounces of gold compared to the second
quarter of 25,135 ounces and remains on track to meet full year
budgeted guidance of 102,000 to 110,000 ounces of gold. Operations
at La Libertad continue to improve with record gold production in
the month of September.
The Limon Mine also performed well in the third quarter
producing 12,715 ounces of gold compared to 11,668 ounces in the
second quarter and remains on track to meet full year budgeted
guidance of 48,000 to 50,000 ounces of gold.
Total gold revenue for the third quarter was $67.1 million on
sales of 39,668 ounces, compared to $57.3 million on sales of
35,860 ounces in the previous quarter. The average realized gold
price in the third quarter was $1,691 per ounce compared to the
average quarter spot price of $1,652 per ounce. B2Gold has no gold
hedging and no debt.
B2Gold maintains its production and cost guidance for 2012 and
is forecasting another record year for gold production in 2012.
Consolidated production from La Libertad and Limon Mines is
expected to be at the upper end of our budgeted guidance of
approximately 150,000 to 160,000 ounces of gold at a cash operating
cost of approximately $590 to $625 per ounce.
Cash operating costs are expected to improve and production to
increase in 2013 and 2014 over 2012 due to the processing of higher
grade ore from the Jabali deposit through the Libertad mill.
Consequently, the Company is projecting gold production to increase
to approximately 185,000 ounces in 2013 and 200,000 ounces in
2014.
Subject to the closing of the recently announced Transaction
with CGA Mining Limited ("CGA") (see below for details), the
Company is expecting production to increase to 385,000 ounces of
gold in 2013 and 400,000 ounces in 2014.
Jabali Development Project, La Libertad Property in
Nicaragua
B2Gold is pleased to announce that it has received the mining
permit, (subject to certain conditions) for the Jabali Central
deposit on La Libertad property in Nicaragua. Construction of the
main road access to town has now been completed and construction of
a private haul road is well underway. Mine infrastructure
development will also commence shortly.
The 2012 budget for the development and feasibility of the
Jabali deposit is approximately $21 million. This budget is funding
the construction of the private haul road for transporting the
Jabali deposit ore to the Libertad mill, and for engineering,
metallurgical and socio-economic programs. The Company plans to
commence the shipping of Jabali ore to the Libertad mill in the
first quarter of 2013. Annual gold production at La Libertad is
projected to increase to 135,000 ounces in 2013 and to 150,000
ounces in 2014.
At Jabali, the Company plans to expend $4.75 million (an
increase of $0.75 million from the initial amount budgeted) to
drill 9,280 metres in 2012 to complete infill drilling of the
Jabali Antenna Zone and further explore deposits that are open to
the east and west.
B2Gold and CGA Sign Merger Implementation Agreement for Business
Combination
B2Gold and CGA recently announced that they have entered into a
definitive Merger Implementation Agreement (see news release dated
September 19, 2012) to combine the two companies at the agreed
exchange ratio of 0.74 B2Gold common shares for each CGA share
held, which represents a purchase price of approximately C$3.18 per
CGA share and a premium of 22% using the 20 day volume weighted
average share price of each respective company, and a 26% premium
over the CGA closing share price on September 17, 2012 based on the
closing price for the B2Gold shares as of such date. The
transaction is valued at approximately C$1.1 billion.
The Transaction will be implemented by way of a Scheme of
Arrangement under the Australian Corporations Act 2001 ("Scheme").
Upon completion of the Scheme, existing B2Gold shareholders and CGA
shareholders will own approximately 62% and 38%, respectively, of
the issued common shares of the combined company.
The Transaction is subject to regulatory, Australian Court,
shareholder, and third party approvals, together with other
customary conditions. Regulatory approvals include approval by the
Australian Foreign Investment Review Board, and ASX and TSX
approvals in respect of the issue of new B2Gold shares under the
Scheme.
A meeting of CGA shareholders to consider the Scheme and a
meeting of B2Gold shareholders approving the issuance of B2Gold
shares that will be issued in connection with the Scheme, will each
be held third week in December. The Scheme is expected to be
implemented shortly thereafter.
ON BEHALF OF B2GOLD CORP.
Clive T. Johnson, President and Chief Executive Officer
The securities described herein have not been and will not be
registered under the United States Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent
registration or an applicable exemption from registration
requirements.
Some of the statements contained in this release are
forward-looking statements, such as estimates and statements that
describe the Company's future plans, objectives or goals, including
words to the effect that the Company or management expects a stated
condition or result to occur. Since forward-looking statements
address future events and conditions, by their very nature, they
involve inherent risks and uncertainties. Actual results in each
case could differ materially from those currently anticipated in
such statements.
The Toronto Stock Exchange neither approves nor disapproves the
information contained in this News Release.
Contacts: B2Gold Corp. Ian MacLean Vice President, Investor
Relations 604-681-8371 B2Gold Corp. Kerry Suffolk Manager, Investor
Relations 604-681-8371 www.b2gold.com
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