B2Gold, a Canada-based gold producer, has reduced its ownership in Calibre Mining.
The company sold 79 million common shares, resulting in aggregate gross proceeds of C$139.04m. This transaction was conducted at a price of C$1.76 per share in an arm's length transaction.
Following the sale, B2Gold's remaining shareholding in Calibre Mining stands at 31,950,333 shares, which equates to a 4% stake in the company.
This marks a notable decrease from their previous ownership of approximately 14.1%, which consisted of 110,950,333 common shares.
In accordance with regulatory requirements, B2Gold will be filing an early warning report under National Instrument 62-103.
This report is related to the company's divestment of Calibre shares and will provide details of the transaction.
As a result of this transaction, B2Gold's ownership has dipped below the 10% threshold, leading to a change in its reporting obligations.
The company has ceased to be a "reporting insider" as per the definition in National Instrument 55-104 – Insider Reporting Requirements and will no longer file insider or early warning reports for its holdings in Calibre, unless mandated by law.
The decision to dispose of the shares was strategic, as explained by B2Gold.
B2Gold’s decision to dispose of the common shares of Calibre was made due to investment considerations including price, market conditions, capital allocation priorities and corporate strategy.
Calibre chairman Blayne Johnson said: “On behalf of the entire team at Calibre, I would like to extend our sincere gratitude to Clive Johnson, president and CEO of B2Gold, and his team for entrusting us with their Nicaraguan assets, which became the founding assets of Calibre.
“Their decision to transfer these assets to an emerging exploration company rather than opting for immediate complete monetisation required both vision and courage. This innovative approach has evolved into a highly beneficial partnership, enhancing value for the shareholders of both our companies.
“Although B2Gold’s shareholding will be reduced through this transaction, we are pleased that they will continue to be a significant shareholder as we strive to further build shareholder value. As a result of the reduced ownership, Randall Chatwin, B2Gold’s representative on the Calibre board of directors, has resigned.”
