B2Gold Corp. (BTO) is buying rival Sabina Gold and Silver (SBB) in an all-stock deal worth $1.1 billion.
Sabina Gold and Silver owns the Back River gold district in Nunavut that includes five mineral claims across an 80-kilometre stretch.
Both B2Gold and Sabina Gold are based in Vancouver, British Columbia.
Under terms of the proposed deal, Sabina shareholders will receive 0.3867 of a share of B2Gold for each Sabina share they currently own.
The deal requires approval by two-thirds of Sabina Gold and Silver shareholders at a special meeting expected to take place in April of this year.
Should the deal close, B2Gold shareholders will own 83% of the combined new company, while former Sabina shareholders will own 17%.
B2Gold’s stock has fallen 11% over the past 12 months to $4.59 per share. Sabina Gold’s stock has risen 18% over the last year to trade at $1.74 a share.
