B2Gold Completes Sale of Royalties Portfolio to Versamet Royalties
Canada-based B2Gold announced on Thursday the sale of a portfolio comprising ten precious and base metals royalties to Sandbox Royalties, now renamed Versamet Royalties, a private metals royalty company focused on returns.
Valued at approximately $90 million, this move enables B2Gold to unlock the value of its royalties, which CEO Clive Johnson believes have been underappreciated by the market.
Under the purchase and sale agreement, Versamet acquired the royalties in exchange for 153.2 million common shares issued to B2Gold at C$0.80 per share, granting B2Gold a 33% equity interest in Versamet.
The royalties portfolio includes assets such as a 2.7% net smelter return (NSR) royalty on the Kiaka gold project and a 2.7% NSR royalty on the Toega gold deposit, both owned by West African Resources.
Additionally, it includes royalties on AngloGold Ashanti’s Quebradona project, Libero Copper & Gold’s Mocoa project, Calibre Mining’s Primavera project, and five exploration stage royalties.
B2Gold has retained a 22.5% silver royalty on Glencore’s Hackett River project, while Versamet holds a 2.0% NSR royalty on the same project. B2Gold intends to explore opportunities to maximize the value of its retained silver royalty.
The transaction’s first phase, concluded on June 5, involved the transfer of royalties on specific projects, with B2Gold receiving 122 million shares of Versamet valued at approximately $72 million.
The second phase, encompassing the remaining royalties, is slated to close within the next 60 days, subject to various provisions. Additionally, an investor rights agreement grants B2Gold the right to nominate one member to Versamet’s board and maintain pro rata participation rights in future capital raises.
B2Gold’s strategic partnership ensures continued exposure to Versamet’s expanding royalty portfolio, which now comprises 28 royalties, with several expected to generate cash flow in the near term.
