B2Gold Corp. Closes its Previously Announced New $350 Million Revolving Credit Facility
Jun 12 15
B2Gold Corp. has closed its previously announced new $350 million Revolving Credit Facility. On May 20, 2015, the Company signed a credit agreement with a syndicate of international banks for a new Revolving Credit Facility for an aggregate amount of $350 million. The New RCF also allows for an accordion feature whereby upon receipt of additional binding commitments, the facility may be increased to $450 million any time prior to the maturity date. HSBC, as Sole Lead Arranger and Sole Bookrunner, will act as the Administrative Agent. The syndicate includes The Bank of Nova Scotia, Société Générale and ING Bank N.V, as Mandated Lead Arrangers. The New RCF will bear interest on a sliding scale of between Libor plus 2.25% to 3.25% based on the company’s consolidated net leverage ratio. Commitment fees for the undrawn portion of the facility will also be on a similar sliding scale basis of between 0.5% and 0.925%. The term for the New RCF will be four years, maturing on May 20, 2019, except that it shall become due on July 1, 2018 in the event that the Company’s 3.25% Convertible Senior Subordinated Notes initially due on October 1, 2018 remain outstanding or the maturity date of the Convertible Notes has not been extended to at least 90 days after May 20, 2019.
B2Gold Corp. Announces Robust Results from Optimized Feasibility Study at Fekola, Mali
Jun 12 15
B2Gold Corp. announced robust results from the optimized feasibility study of Fekola Gold Project, commencement of construction at Fekola in Mali. Open pit gold mine with an initial production life of mine of 12.5 years based on probable mineral reserves Average annual gold production for years one through seven of 350,000 ounces per year at a $418 operating cash cost per ounce Average annual LOM gold production of 276,000 ounces per year at an operating cash cost of $552 per ounce New open pit probable mineral reserves of 49.2 million tonnes at a grade of 2.35 grams per tonne gold containing 3.72 million ounces of gold at a stripping ratio of 4.5:1 Average LOM gold recovery of 92.8% resulting in a total of 3.45 million ounces produced over the 12.5 year life of mine Estimated pre-production capital cost of $395 million plus $67 million for fleet and generator costs which are expected to be lease financed. This does not include approximately $30 million of early work on schedule to be completed by the end of June 2015 Cumulative LOM net cash flow pre-tax of $1.66 billion at an assumed gold price of $1,300 per ounce Net present value pre-tax of $1.01 billion at a 5% discount rate generating a pre-tax internal rate of return of 35% Plant and supporting infrastructure will be built to a design throughput of 4.0 million tonnes per annum with a 25% design factor which allows for future throughput expansion with minimal additional capital outlay Pre-construction activities have commenced at the Fekola Project and, based on current assumptions, commencement of production is expected in the fourth quarter of 2017. The Fekola Project is located in south-western Mali in the regional province of Kayes, approximately 365 kilometres west of the capital Bamako. The current mining license (exploitation license) for the Fekola Project covers an area of approximately 74 square kilometres, containing all mine infrastructure including the open pit, processing plant, tailings storage facility, and waste dumps. The company is in the process of creating a wholly-owned subsidiary company in Mali. In conjunction with the negotiation of a related shareholder's agreement, the mining license currently held in Songhoi will be transferred to this company and the Government of Mali will take a free carried 10% equity interest in the Exploitation Company. The Malian Mining Code also allows the Government of Mali to purchase (at market terms) an additional 10% interest in the Exploitation Company. The Government of Mali has expressed an interest in acquiring an additional 10% interest and negotiations are on-going. If the Government of Mali is successful, and as anticipated, the final ownership of the Exploitation Company will be 80% by the company and 20% by the Government of Mali. The company has also begun the process of negotiating a new Mining Convention with the Government of Mali which will govern the procedural and economic parameters pursuant to which the company will operate the Fekola Project. Creation of the Exploitation Company and negotiation of the Mining Convention are expected to be completed by the third quarter of 2015. Under the Optimized Feasibility Study, the Fekola Project will be developed as an open pit mine in seven stages, where run-of-mine ore will be trucked to the plant, crushed, and then treated in a grinding circuit utilizing conventional SAG and ball mills, and a carbon-in-pulp recovery process. The mine plan is based on probable mineral reserves of 49.2 million tonnes at an average grade of 2.35 g/t containing 3.72 million ounces of gold at a stripping ratio of 4.5:1 to be mined over 9.5 years. Annual mined tonnage will total 32 million tonnes per year, using stockpiling to optimize head grade and gold production in the first seven years of the project. The processing plant facility and supporting infrastructure will be built to a design throughput of 4.0 million tonnes per annum with a 25% design factor which allows for an increase in future throughput with minimal additional capital overlay. The OFS base case assumption is 4.0 million tonnes per year processing rate for 12.5 years. The current average annual production for the first seven years is approximately 350,000 ounces per year at an average operating cash cost of $418 per ounce and for the LOM approximately 276,000 ounces per year at an average operating cash cost of $552 per ounce. The total pre-production capital costs are estimated to be $395 million plus $67 million of anticipated mine fleet and power generator costs which are expected to be lease financed. The financial modeling for the Fekola Project indicates robust economics. At a reserve gold price of $1,300 per ounce the Fekola Project is projected to yield a positive pre-tax NPV of $1.01 billion at a discount rate of 5%. The pre-tax IRR is 35% and the payback is approximately 2.25 years after the first gold production.