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Merger worth its weight in gold
Middletons has acted for CGA Mining Limited on its $C1.1 billion merger with Canadian gold and silver mining company B2Gold Corp.
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Firms: Middletons (CGA Mining Limited)
Area: Corporate (Energy and resources)
Value: $C1.1 billion. Their combined market capitalisation will be in the vicinity of $C2.9 billion
Key players: Partner Simon Salter led for Middletons and was supported by partner Adam Levine and Middletons consultant Clare Power
Deal significance: CGA is a major player in the Philippines, operating the largest gold project in the country, the Masbate Gold Project. CGA is listed on the Australian Securities Exchange and on the Toronto Stock Exchange. Middletons has acted for CGA for many years.
B2Gold Corp is a Vancouver-based gold producer with two mines in Nicaragua and a strong portfolio of development and exploration assets in Nicaragua, Colombia, Uruguay and Namibia. B2Gold trades on the Toronto Stock Exchange and on the Namibian Stock Exchange.
“CGA shareholders will receive 0.74 B2Gold shares for each existing CGA share held. The merger with B2Gold will be conducted by way of an Australian scheme of arrangement requiring shareholder and court approval,” said Salter.
Levine said: “B2Gold and CGA Mining together will create a growth-oriented mid-tier gold producer on a global scale. Production and development assets will span three continents and will be located in high-growth emerging economies, serving to mitigate collective operational and geopolitical risk.”
"Upon completion of the merger, existing B2Gold shareholders and CGA shareholders will own approximately 62 per cent and 38 per cent, respectively, of the issued shares of the combined company. Completion of the transaction is expected early next year."
