An intermediate gold producer, B2Gold and Radius Gold have signed a binding letter contract to buy a 100% interest in the El Pavon and Trebol gold properties located in Nicaragua. B2Gold has also consented to make conditional payments to Radius Gold with US$10/oz of gold on 40% of any confirmed and probable mineral reserves surpassing 500,000 oz.
In connection with a prior joint venture deal with Radius Gold, B2Gold had received a 60% interest in the Pavon and Trebol properties by spending approximately US$4 M on reconnaissance programs, which resulted in a 60%-40% B2Gold-Radius joint venture.
The business deal will depend on numerous conditions, including the negotiation and implementation of a definitive purchase deal, B2Gold’s completion of adequate due diligence by May 6, 2012, the sanction of regulatory authorities, and the approval of Toronto Stock Exchange for listing B2Gold’s common shares to be issued based on the proposed business deal.
Both the companies have consented to sign a joint venture deal on 60% to 40% basis with respect to the La Magnolia and San Jose properties located in Nicaragua, and will continue their joint exploration operations on the properties. Radius Gold and B2Gold will provide 40% and 60%, respectively for the exploration costs of each joint venture.
Based on the business deal, Radius Gold and B2Gold will end all other facets of the current joint venture arrangements signed between them in December 2009, in respect to the San Pedro, Trebol and El Pavon exploration properties.