Latin American-focused Canadian miner B2Gold (TSX:BTO) said Wednesday it will buy CGA Mining (TSX:CGA & ASX:CGX) for $1.1 billion to gain access to the Masbate mine, the largest operating gold project in the Philippines.
CGA’s flagship mine is expected to produce 200,000 ounces over the 12-month period ending June 30, 2013, the companies said.
The offer of $3.18 per share represents a premium of 20 per cent to CGA’s Tuesday closing price on the Toronto Stock Exchange.
If it gets the required approvals, the combined firm will have operating mines in Nicaragua and the Philippines and some lesser developed properties in Colombia, Uruguay and Namibia.
“With this transaction, B2Gold has taken a major step towards cementing itself as a leading gold sector consolidator, providing for geographic and operational diversity while contributing significant cash and future cash flow towards B2Gold’s exciting development projects,” chief executive Clive Johnson said in a statement.
The projected joint 2012 production of the two companies is 350,000 ounces, including 200,000 ounces from CGA’s mine in the Philippines.