Boston, MA 09/23/2014 (wallstreetpr) – B2Gold Corp (NYSEMKT:BTG)’s scheme of arrangement transaction in association with Papillon Resources Limited has been approved by Federal Court of Australia. Now, B2Gold can purchase all of the outstanding and issued shares of Papillon. The proposed arrangement was approved by the Papillon shareholders in a scheme meeting held on September 15, 2014. The record date is September 26, 2014, when the holders of Papillon stocks will know the number of B2Gold shares they are entitled to receive as per the scheme. B2Gold expects the entire process to conclude by October 3, 2014. It includes the issuing process of B2Gold stocks to former Papillon shareholders.
The initial approval
The proposed scheme of arrangement was welcomed right from the start. It received the approval of B2Gold Corp (NYSEMKT:BTG) shareholders in a special meeting in which 80.3% of the B2Gold shareholders participated in the voting process. Out of them, 99.9% of the shareholders voted in favor of the merger with Papillon Resources. It was almost a 100% favorable outcome in the voting process reflecting the common view of shareholders. The merger announcement was made on June 3, 2014.
The significance
B2Gold Corp (NYSEMKT:BTG) and Papillon will merge to form a single entity that will focus on the development of important Fekola project in Mali. It holds great significance for B2Gold as it will optimize its existing Limon, La Libertad and Masbate mines. It will also have a positive impact on the Otjikoto mine in Namibia, which is still under construction.
Optimization of mines
The optimization of mines can result in the gold production of 395,000 – 420,000 ounces in 2014 and around 540,000 ounces in 2015. B2Gold Corp (NYSEMKT:BTG) has strong funding capacity and an experienced management team that will play a crucial role in mine development. The company sees huge potential and premium returns at Fekola. It hopes to see Fekola in its diversified portfolio adding to the financial performance in coming quarters.
