The two companies will exchange common shares at a ratio of 0.74 for each CGA share held, which is a 22% premium, amounting to C$3.18 ($3.22) per CGA share.
B2Gold president and CEO Clive Johnson said that CGA and its flagship Masbate mine offer B2Gold shareholders immediate leverage to a significantly larger combined production profile.
"With this transaction, B2Gold has taken a major step towards cementing itself as a leading gold sector consolidator, providing for geographic and operational diversity while contributing significant cash and future cash flow towards B2Gold’s exciting development projects," Johnson added.
CGA president and CEO Michael Carrick said, "B2Gold has a remarkable development profile ahead, and Masbate will play a key role in bringing those projects to fruition."
Following the merger completion, B2Gold shareholders will own 62% and CGA shareholders will own 38% of the issued common shares of the combined company.
