(Adds details from the statement, share close)
June 3 Canada's B2Gold Corp
said it would buy Australia's Papillon Resources Ltd in
an all-stock deal worth $570 million, to gain access to its
Fekola gold deposit in Mali.
B2Gold will offer Papillon's shareholders 0.661 B2Gold
common shares for each ordinary Papillon share held.
The offer translates to A$1.72 ($1.59) per share,
representing a 21 percent premium to Papillon's close on May 23,
the stock's last trading day.
The proposed merger increases B2Gold's measured and
indicated mineral resources by 25 percent.
B2Gold said it expected to produce between 395,000 and
400,000 ounces of gold in 2014 from three operating mines, with
output expected to grow to more than 900,000 ounces of gold by
2017 from five operating mines.
B2Gold's financial advisers include Canaccord Genuity Corp
and Raymond James Ltd. Lawson Lundell LLP is the company's
Canadian legal counsel and its Australian legal counsel is K&L
Macquarie Capital is Papillon's financial adviser on the
deal. Its Australian legal counsel is Hardy Bowen and its
Canadian legal counsel is Stikeman Elliott LLP.
B2Gold's stock closed at C$2.62 on the Toronto Stock Exchange
($1 = 1.0806 Australian Dollars)
(Reporting by Sneha Banerjee in Bangalore; Editing by Simon