B2Gold has reached a deal to offload a portfolio of ten precious and base metals royalties to Sandbox Royalties, which has been rebranded as Versamet Royalties.
Valued at around $90m (C$123.42m), this deal grants B2Gold a 33% equity stake in Versamet through the issuance of 153.2 million common shares priced at C$0.80 each.
The portfolio acquired by Versamet includes a 2.7% net smelter return (NSR) royalty on the Kiaka gold project and the Toega gold deposit, both operated by West African Resources.
Additionally, the portfolio features a 2% net profit royalty on AngloGold Ashanti’s Quebradona project, a 2% NSR royalty on Libero Copper & Gold’s Mocoa project and a 1.5% NSR royalty on Calibre Mining’s Primavera, along with five other exploration stage royalties.
Meanwhile, B2Gold has retained a 22.5% silver royalty on Glencore’s Hackett River project.
Versamet also holds a separate 2% NSR royalty on the same project.
B2Gold has stated its intention to continue exploring options to maximise the value of its remaining Hackett River Royalty.
The initial phase of the transaction was completed on 5 June 2024, encompassing the royalties on the Kiaka Gold Project, the Toega Gold Deposit the Primavera Project and two exploration stage royalties.
As a result, B2Gold received 122 million shares of Versamet, valued at around $72m.
The completion of the remaining royalties is contingent on the expiration or execution of various right of first refusal or right of first offer provisions, which are anticipated to resolve within the next 60 days.
Following this, the second phase of the transaction is expected to close.
In line with the first phase's closure, B2Gold and Versamet have signed an investor rights agreement.
This agreement allows B2Gold to appoint one member to Versamet’s board of directors and provides them with pro rata participation rights in future capital raises.
The partnership ensures B2Gold's continued involvement with Versamet’s expanding royalty portfolio, which now comprises 28 royalties, including two that are currently generating cash flow and several others that are projected to do so shortly.
