Vancouver's B2Gold Corp. (TSX:BTO) has closed its merger with Toronto's Central Sun Mining Inc. (TSX:CSM) in an all-share deal worth roughly $66.8 million.
Under the agreement, Central Sun shareholders received 1.28 B2Gold shares for each Central Sun share. The deal values each Central Sun share at $0.65 a 45% premium over the January 26 closing price.
The combination of the two companies transforms B2Gold into a junior gold producer by acquiring Central Sun's Orosi mill project in Nicaragua. B2Gold estimates that initial gold production will be 45,000 ounces and will increase to 130,000 by year's end.
As part of the deal, Central Sun issued B2Gold a $10 million convertible debenture to fund immediate working capital requirements at Orosi.
B2Gold's share price range during the past week: between $0.59 and $0.61; 52-week high: $1.75; 52-week low: $0.30.