September: B2Gold arrives in Nunavut: Canada’s newest mining friendly territory

Mineral resource development is an important economic driver in Nunavut. The development of mining projects in the West Kitikmeot region impacts the government and residents of the territory. Nunavut has a well-established and sophisticated environmental review process, allowing all parties to participate in open and transparent review processes.

Recently, I discussed B2Gold’s recent move to buy Sabina Gold & Silver Corp. in an all-stock deal worth $1.1 billion (US$824 million) with B2Gold’s president and CEO, Clive Johnson. In this article, Johnson answers questions from the Canadian Mining Journal to give an update on the transaction that resulted in B2Gold owning the Back River gold district in Nunavut, which holds multiple high-potential mineralized zones poised to boost the Vancouver-based gold giant’s reserves and production. The Back River gold district consists of five mineral claims blocks along an 80-km belt. The most advanced project in the district, Goose, is fully permitted, construction stage, and has been de-risked with significant infrastructure currently in place. The Goose project has an estimated two-year construction period, which is expected to be completed and first gold poured in the first quarter of 2025.

B2Gold’s management team has strong northern construction expertise and experience to deliver the fully permitted Goose project and the financial resources to develop the significant gold resource endowment at the Back River gold district into a large, long life mining complex.

“The closing of the acquisition of Sabina and the Back River gold district represents a milestone for B2Gold, as we continue to build a low-cost responsible senior gold mining company. We are excited to add such a high-quality, high-grade gold project in a top mining jurisdiction to our global portfolio, and we are thrilled to welcome the exceptional Sabina team into B2Gold. We also look forward to working with the Kitikmeot Inuit Association and local communities as we advance the construction of the Goose project and our development strategy,” said Mr. Johnson.

Under the terms of the transaction, Sabina shareholders received 0.3867 B2Gold common shares per Sabina common share. In aggregate, B2Gold issued approximately 216 million B2Gold shares as consideration under the transaction.

Q B2Gold acquired fellow precious metals miner Sabina Gold & Silver in an all-stock deal worth $1.1 billion (US$824 million). Can you please talk to us about this acquisition and how important it is for B2Gold and the Canadian mining sector?

A We are very excited to be coming home to Canada, building B2Gold’s first mine in Canada after decades of successful mine construction and operation around the world, including in Africa, Asia, Russia, and South America. The Goose project, which is part of the Back River gold district, adds a high-quality, construction stage, high-grade gold project in a top mining jurisdiction to our global portfolio.

Once the Goose project construction is complete, we expect it will produce over 300,000 oz. of gold per year with an attractive cost profile. The Goose project remains on schedule for mill completion and first gold pour in the first quarter of 2025.

The Back River gold district is a multi-generational district with five claim blocks (including Goose) along an 80-km belt, all with significant exploration potential. B2Gold has several organic growth opportunities with the ongoing construction of the Goose project, and a potential expansion of our operation in Mali.

Q B2Gold is known as a low-cost international senior gold producer. Is this acquisition going to affect this reputation?

A No, it is not. We are a million oz. gold producer and have seen continued annual growth in gold production for more than a decade. The Goose project will support the continued growth with a very attractive cost profile.

Q B2Gold has projects and explorations internationally, with only the head office located in Vancouver, Canada. The acquisition of Sabina hands B2Gold the Back River gold district property in Nunavut, which holds multiple high-potential mineralized zones poised to boost B2Gold’s gold reserves. This would be your first property in Canada. Does this mean a change in the strategy of B2Gold?

A The Back River gold district is B2Gold’s first Canadian operation. The acquisition is a great fit for B2Gold as we can leverage our construction expertise and cold-weather operating experience (from Kupol in Russia with Bema Gold, B2Gold’s predecessor company) to create value for B2Gold shareholders.

B2Gold’s management team has strong northern construction expertise and experience to deliver the fully permitted Goose project, the most advanced project in the district. We also have the financial resources to develop the significant gold resource endowment at the Back River gold district into a large, long-life mining complex that will benefit the Inuit people of Nunavut and their government. B2Gold recognizes that respect and collaboration with the Kitikmeot Inuit Association is central to the license to operate in the Back River gold district and will continue to prioritize developing the project in a manner that recognizes Indigenous input and concerns and brings long-term socio-economic benefits to the area.

The acquisition does not signal a change in strategy. B2Gold has always been a geologically focused, not geographically focused, international gold producer. Elsewhere in Canada, we are moving forward with a strategy to make strategic investments in Canadian junior mining companies where qualified management teams are conducting exploration that demonstrates good mineral potential. This includes providing financial backing and technical expertise, and gives us access to some potentially large discoveries, such as Snowline’s exploration project in Yukon, and Matador’s exploration project in Newfoundland and Labrador.

B2Gold is also a company built on and committed to exploration. Currently, with an annual exploration budget of $88 million, we have major exploration projects underway around our existing mines and development projects, as well as in Finland, Cote d’Ivoire, and Uzbekistan.