Good commentary from Stockhouse
Calibre Buys Two Gold Mines from B2 Gold https://stockhouse.com/opinion/independent-reports/2019/11/04/calibre-buys-two-gold-mines-from-b2-gold
From link above:
if you are smart enough to remember how to fall off a bicycle, you qualify as wise enough to be buying shares in Calibre Mining Corp. (CXB:TSX.V; CXBMF:OTC.MKTS). It's that easy.
B2Gold Corp. (BTG:NYSE; BTO:TSX; B2G:NSX), run by Clive Johnson, is a $4 billion company. They had two gold mines in Nicaragua but have transitioned to mining in Africa and the Far East. Johnson is not above trying to maximize value for his shareholders, so when the decision was made to focus on larger mines in Africa, he looked around for a suitable junior to take over the existing production assets in Nicaragua. There was such a junior right in their own backyard and a deal was cut.
Essentially B2 is selling the El Limon gold mine with a 500,000 TPA (tonnes per annum) mill with a partial Q4 guidance of 14,000–17,000 ounces with an AISC (all-in sustaining cost) of US$950–$990, and the La Libertad gold mine with a 2.2 million TPA mill with a partial Q4 guidance of 17,000¬–20,000 ounces, showing an AISC of $930–$960, for about US$100 million in cash and shares. The new owner of the two mines and a couple of extra projects with potential is named Calibre Mining, with a ten-year history of exploration in Nicaragua.
B2 is ending up with US$40 million in crisp $100 bills, along with 29% of the shares of Calibre and a US$10 million convertible note, with an additional US$10 million due in a year.
The deal makes a ton of sense for both companies. B2 has operating mines in Mali producing about 425,000 ounces of gold a year, another gold mine in the Philippines doing about 205,000 ounces a year, and yet another in Namibia showing production of about 170,000 ounces of gold a year.
While their two existing mines in Nicaragua built the structure for B2, total production of about 140,000 to 150,000 ounces wasn't enough to move the needle for shareholders.
For Calibre, it gives them the opportunity to move into the lower reaches of being a mid-tier producer with a lot of exploration potential. For investors, it gives a chance to pick up a company with existing producing mines, and about $75,000,000 above and beyond AISC yearly. This is a good deal for everyone and as easy as falling off a bike.
The potential for a revaluation of the shares is giant. At the issue price of $0.60 a share for the deal on a peer basis, Calibre has a 300% potential move higher, and on gold resources, has a 200% potential move higher. While B2 could have kept the mines and operated them themselves, they have a large potential for expanding what they will get for the mines in total, and for Calibre and investors, it really looks like a slam dunk for higher prices.
The company has hit the ground running. On Oct. 31, Calibre announced some great drill intercepts from both mines.