B2Gold to Buy Central Sun Mining for C$66.8 Million
B2Gold Corp., the company exploring for gold in Colombia, agreed to acquire Central Sun Mining Inc. for C$66.8 million ($53.7 million) to add gold output in Nicaragua.
B2Gold, based in Vancouver, will issue 1.28 of its shares for each of Toronto-based Central Sun’s, representing a purchase price of about 65 cents a share, the companies said today in a statement. That’s a 44 percent premium to Central Sun’s closing price on Jan. 26, the day before the companies announced they were in talks.
The acquisition gives B2Gold precious-metal production from Central Sun’s Limon and Orosi mines in Nicaragua, providing a source of income at a time when credit markets are difficult to access. The deal also stymies an attempt by Halifax, Nova Scotia- based Linear Gold Corp. to buy Central Sun.
Central Sun will issue to Vancouver-based B2Gold a convertible debenture worth as much as C$10 million, the companies said.
B2Gold fell 4 cents, or 4.8 percent, to 79 cents at 10:20 a.m. in Toronto Stock Exchange trading. Central Sun slipped 4 cents, or 4.7 percent, to 81 cents.
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