B2Gold (TSX: BTO, NYSE-A: BTG) has reduced its stake in Nicaragua-based Calibre Mining (TSX: CXB) to below 10%, citing market conditions and corporate strategy. The sale of 79 million shares earned C$139 million, reducing B2Gold’s holding from 14%.
“B2Gold remains a supportive shareholder of Calibre and does not currently plan to make any additional changes to its interest,” the company said. It noted that investment considerations, market conditions, capital allocation priorities, and corporate strategy influenced the decision.
Calibre Mining is developing the Valentine gold project in Newfoundland and produces 45,000 ounces annually in Nevada. The company also operates the Limon Norte open-pit mine complex about 120 km north of Nicaragua’s capital, Managua. Despite a partial wall collapse at Limon affecting production this month, Calibre has maintained its 2024 output guidance of 275,000-300,000 ounces.
Shares in Calibre Mining dropped nearly 4% on Friday morning to C$1.79 each in Toronto, valuing the company at C$1.4 billion. They’ve traded in a 52-week range of C$1.16 to C$2.34.
In other developments, B2Gold announced that its Gramalote gold project in Colombia could produce 2.3 million ounces over a 12.5-year open-pit mine life, with all-in sustaining costs of $886 per ounce, according to a preliminary economic assessment (PEA). The Gramalote project has an after-tax free cash flow of $1.38 billion, a net present value at a 5% discount of $778 million, and an internal rate of return of 20.6%. B2Gold estimates pre-production capital costs at $807 million, including $93 million for mining equipment and $63 million for contingencies.
B2Gold also mentioned its Springbok zone at the Antelope deposit near the Otjikoto mine in Namibia. The company believes the deposit holds enough gold to start a PEA there, with mining potentially starting in 2026. The Springbok zone has 1.75 million inferred tonnes grading 6.91 grams of gold per tonne for 390,000 ounces of metal, according to an initial resource estimate. B2Gold is also drilling the Oryx zone and a possible third structure, Impala, at Antelope, about 3 km south of Otjikoto.
Meanwhile, Calibre Mining expects the Valentine project, which it acquired last year through a buyout of Marathon, to begin annual output next year. The project is projected to produce 195,000 ounces annually for the first 12 years of a 14.3-year mine life, according to a 2022 feasibility study.
Additionally, Calibre appointed former Iamgold (TSX: IMG; NYSE: IAG) chief financial officer Daniella Dimitrov to the same position. Dimitrov has held roles as an investment banking partner at Sprott Capital Partners, CEO of Orvana Minerals (TSX: ORV), executive vice-chair of Baffinland Iron, and chief operating officer of Dundee Securities.
The reduction of B2Gold’s stake in Calibre Mining to under 10% means B2Gold no longer has to report its transactions in Calibre to regulators. B2Gold also operates gold mines in Mali and the Philippines and is constructing the Goose project in northern Canada. The company is exploring and developing projects in Mali and Finland.
Source: Mining.com
