Rupert Resources (TSX: RUP) is in discussions to buy B2Gold‘s (TSX: BTO) 70% interest in a gold JV it holds in northern Finland’s Central Lapland greenstone belt with Aurion Resources (TSXV: AU; US-OTC: AIRRF).
Aurion first reported the all-share offer, after being notified by B2Gold.
Rupert is also focused on the Central Lapland belt. Its Rupert Lapland project contains the the multi-million-ounce Ikkari discovery, located 50 km southeast of Agnico Eagle Mines’ (TSX: AEM; NYSE: AEM) Kittila gold mine, and the Pahtavaara mine and mill. In a separate release, the Toronto-based company confirmed that preliminary discussions are underway.
Rupert is offering to issue 28.6 million shares to B2Gold, for an implied total value of $102.8 million based upon the market price of its shares as of Mar. 8, 2024. The stock was down 1.1% to $3.55 by 11:30 a.m. ET on Monday, for a market capitalization of $723.8 million.
The acquisition would bolster Rupert’s portfolio, adding several exploration targets covering 293 sq. km. of the Sirkka shear zone. This includes the Helmi discovery located 1.5 km west of Ikkari and the Kutuvuoma prospect discovered in 1990 by state-backed miner Outokumpu.
Under a 2019 shareholders agreement between the JV partners, Aurion holds a right of first refusal with respect to the proposed sale by B2Gold of its interest in the JV. It will have until May 9, 2024, to decide whether to exercise this right.
The transaction is also conditional upon execution of a definitive agreement and investor rights agreement, completion of mutual due diligence, as well as applicable regulatory approvals.
Shares of Aurion surged as much as 11.5% to 58¢ apiece on Monday, capitalizing the company at $76.8 million. The stock traded between 39¢ and 82¢ over the past 52 weeks.
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