B2Gold(BTG) Newsfilter·2024-06-06 11:00Core Viewpoint - B2Gold Corp. has entered into a strategic partnership to sell a portfolio of 10 precious and base metals royalties to Sandbox Royalties Corp., now renamed Versamet Royalties Corporation, which is expected to unlock value from previously unrecognized assets [8][11]. Company Overview - B2Gold is a low-cost international senior gold producer based in Vancouver, Canada, with operating mines in Mali, Namibia, and the Philippines, and a project under construction in Canada [1]. - The company forecasts total consolidated gold production of between 860,000 and 940,000 ounces in 2024 [1][4]. Transaction Details - Under the terms of the agreement, Versamet will issue 153.2 million common shares to B2Gold at a price of C90 million [9]. - The royalties included in the transaction consist of various net smelter return (NSR) and net profit royalties on projects owned by other companies, including West African Resources Ltd. and AngloGold Ashanti Ltd. [9]. - B2Gold has retained ownership of a 22.5% silver royalty on Glencore's Hackett River project [10]. Strategic Implications - The transaction allows B2Gold to unlock the value of its royalties, which were not a core part of its business, while retaining significant upside exposure as a major shareholder in Versamet [11]. - The first phase of the transaction closed on June 5, 2024, with B2Gold receiving 122.0 million shares valued at approximately $72 million [11]. - An Investor Rights Agreement has been established, allowing B2Gold to nominate a member to Versamet's Board of Directors and participate in future capital raises [12]. Future Outlook - The remaining royalties in the transaction are subject to rights that are expected to lapse or be exercised within the next 60 days, with the second phase of the transaction anticipated to close thereafter [11]. - Versamet's royalty portfolio now includes 28 royalties, with two currently cash flowing and several expected to generate cash flow soon [12].