B2Gold inks earn-in accord for Namibian asset with Forsys Metals

TORONTO (miningweekly.com) – Gold miner B2Gold has struck an earn-in accord with uranium-focused project developer Forsys Metals to earn a 100% interest in the Ondundu gold project, in Namibia.

B2Gold, which has a portfolio of projects in Africa, South America and the Philippines, started production at the Otjikoto gold mine in north-central Namibia in December 2014 and, if it successfully completes the earn-in, will gain another gold asset not far from its existing infrastructure.

Under terms of the agreement B2Gold, as project manager, would be required to spend $900 000 in the first 12 months to acquire a 25% interest in the property.

Should B2Gold exercise its first right, it would be required to spend a further $1.1-million in the second 12 months to acquire a further 24% interest in Ondundu. After this phase, B2Gold would be required to spend an additional $1.3-million in the third year of the agreement, to acquire another 26% interest.

B2Gold and Forsys could also separately exercise a call or put in an option to transfer the balance of Ondundu for $8.5-million after 24 months or 36 months, respectively.

Forsys CEO Marcel Hilmer said the earn-in agreement with B2Gold ensured a strong financial commitment to develop Ondundu.

According to Forsys, Ondundu was discovered in 1917, and is located in the Northern zone of the Neoproterozoic Damara Orogen of north-central Namibia. Historic data from Goldfields indicates a resource of about 500 000 oz of gold, contained in 4.5-million tonnes grading 3.39 g/t.

Meanwhile, B2Gold on Thursday reported record quarterly consolidated gold output of 131 469 oz for the fourth quarter ended December 31 – an 18% improvement over the same period in 2014.

The company recorded gold revenue of $139-million, on record sales of 127 482 oz at an average price of $1 090/oz.