B2Gold purchases 100% of two Nicaraguan operations

The Canadian mining company buys 40% of shares from joint venture partner Radius Inc. for $20,08 million, and takes total control of Trebol and El Pavon gold mining sites in Nicaragua.

Tuesday, April 10, 2012

B2Gold Corp. and Radius Gold Inc. announced on April 9 the signing of a binding letter agreement pursuant to which B2Gold has agreed, among other things, to acquire a 100% interest in the Trebol and El Pavon gold properties in Nicaragua in consideration of C$20 million, payable in common shares of B2Gold at a price per share equal to the volume weighted average price of B2Gold’s common shares on the Toronto Stock Exchange (“TSX”) for the ten trading days immediately preceding the date of the letter agreement.

A joint corporative press release reads,

Joint News Release
B2Gold Corp. Acquires Trebol and Pavon Properties in Nicaragua

Vancouver, April 9, 2012 – B2Gold Corp. (TSX: BTO, OTCQX: BGLPF) (“B2Gold”) and Radius Gold Inc. (TSX-V: RDU) (“Radius”), are pleased to announce that the two companies have entered into a binding letter agreement pursuant to which B2Gold has agreed, among other things, to acquire a 100% interest in the Trebol and El Pavon gold properties in Nicaragua in consideration of C$20 million, payable in common shares of B2Gold at a price per share equal to the volume weighted average price of B2Gold’s common shares on the Toronto Stock Exchange (“TSX”) for the ten trading days immediately preceding the date of the letter agreeemnt. In addition, B2Gold has agreed to make contingent payments to Radius of US$10 per ounce of gold on 40% of any proven and probable mineral reserves in excess of 500,000 ounces (on a 100% basis). Based on a previous joint venture agreement with Radius, B2Gold had earned a 60% interest in the Trebol and Pavon properties by expending a total of US$4 million on exploration, resulting in a 60% - 40% B2Gold – Radius joint venture.

The completion of the transaction is subject to a number of conditions, including the completion by B2Gold of satisfactory due diligence by May 6, 2012, the negotiation and execution of a definitive purchase agreement and the approval of all relevant regulatory authorities, including the approval of the TSX for the listing of the common shares of B2Gold to be issued in connection with the transaction.
B2Gold and Radius have also agreed to enter into a joint venture agreement on 60% - 40% basis with respect to each of the San Jose and La Magnolia properties in Nicaragua and continue jointly exploring the properties with B2Gold and Radius contributing 60% and 40% respectively, of the exploration expenditures of each joint venture.

In connection with the proposed transaction, B2Gold and Radius will terminate all other aspects of the existing option and joint venture arrangements entered into between the parties in December 2009 in respect of the Trebol, El Pavon and San Pedro exploration properties.

About B2Gold Corp.

B2Gold is well positioned to continue its growth as an intermediate gold producer from existing projects given the proven technical team; strong operational and financial performance; and high quality development and exploration projects. Based on current assumptions, B2Gold is projecting gold production to grow to over 450,000 ounces per year by 2016. With B2Gold’s strong cash position and impressive projected cash from mining operations, B2Gold expect to be able to continue to fund all planned development, exploration and capital expenditures in 2012 without requiring external funding, and end the year in a strong financial position. In addition, B2Gold will continue to pursue accretive acquisitions and carry out our aggressive exploration programs. B2Gold trades on the Toronto Stock Exchange under the symbol “BTO” and on the OTCQX under the symbol “BGLPF”. 2

About Radius Gold Inc.
Radius has been exploring for gold in Latin America for nearly a decade. It has assembled interests in a portfolio of promising gold projects throughout the region, including carried stakes in two small-scale developing gold projects in Guatemala and Nicaragua, and a number of 100% owned exploration plays, including the HB property in Guatemala.

ON BEHALF OF B2GOLD CORP.

Clive T. Johnson, President and Chief Executive Officer

ON BEHALF OF RADIUS GOLD INC.

Simon Ridgway , CEO & Chairman of the Board

For more information on B2Gold please visit B2Gold’s web site at www.b2gold.com or contact:
Ian MacLean Kerry Suffolk
Vice President, Investor Relations Manager, Investor Relations
604-681-8371 604-681-8371

For more information on Radius Gold please visit the Radius Gold’s web site at www.radiusgold.com or contact:
Investor relations: Ralph Rushton
Tel: 604-801-5432
Toll Free: 1-888-627-9378
Email: info@radiusgold.com



More on this topic

Nicaragua: $100 Million Invested in Gold Mines

July 2019

Canada's Calibre Mining bought from B2Gold Nicaragua, the El Limón and La Libertad gold mines, as well as the Pavon project and other concessions, in a transaction that totaled $100 million.

The El Limón and La Libertad mines have produced more than 1.4 million ounces of gold since 2010, and their combined production of gold in 2019 is projected to be between 150,000 and 160,000 ounces, the company said in a statement.

Nicaraguan Gold Mine Production Increases

December 2010

"La Libertad" gold mine, owned by B2Gold Corp, could increase its production and operating life.

The company announced the results of exploratory drilling, which indicates the possibility of increasing current production, which stands at 80.000-90.000 ounces of gold annually.

$2.3 Million Gold Exploration in Nicaragua

September 2009

Calibre Mining and B2Gold Corp. will explore gold in the "Borosi" mining project.

Calibre reported that a $2.3 million work program and budget has been approved by B2Gold Corp at Borosi project in the Bonanza-Rosita-Siuna areas of northeast Nicaragua.

Calibre purchased the 71,000 hectare Borosi Gold-Copper project in July 2009; the company subsequently entered into a joint venture agreement with B2Gold to further explore and develop the project. Under the terms of the agreement, B2Gold may earn a 51% interest in the Borosi concessions by completing $7.5 million of exploration expenditures over a three year period.

Radius Gold Starts Drilling in Nicaragua

May 2008

Drilling has begun on the Company's Trebol property (42,193 hectares) located in northeastern Nicaragua, where epithermal gold mineralization is associated with a series of intensively silicified ridges.

The preliminary drill program is being designed to test the sub-surface continuity of the gold grades observed in selected trenches and to give geological and structural information on the geometry and controls on mineralization which will be used to further explore the property.

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