B2gold Corp. · TSX:BTO
B2gold — Merger or Acquisition (October 2011)
32 slides from B2gold's merger presentation, Oct 11, 2011
Slide 1: B2Gold Corp. Auryx Gold Acquisition
B2Gold Corp. Auryx Gold Acquisition October 11, 2011 1
Slide 2: Cautionary Statement
Cautionary Statement This communication does not constitute an offer to purchase or exchange or the solicitation of an offer to sell or exchange any securities of Auryx or an offer to sell or exchange or the solicitation of an offer to buy or exchange any securities of B2Gold, nor shall there be any
Slide 3: Transaction Overview
Transaction Overview > B2GOLD ;
Slide 4: Acquisition of Auryx Gold
Acquisition of Auryx Gold B2Gold (“B2”) has entered into a binding letter agreement to acquire all the outstanding shares of Auryx Gold (“Auryx”) for approximately C$160 million in B2 shares (1) Auryx owns a 92% interest in the Otjikoto gold project in Namibia, Africa and 100% of two additional
Slide 5: Transaction Overview
Transaction Overview B2 and Auryx have signed a binding agreement to combine the two companies Structure expected to be completed via a Plan of Arrangement Consideration Auryx shareholders to receive 0.23 B2 shares plus a cash payment of C$0.001 Purchase price of approximately C$0.88 per Auryx
Slide 6: Transaction Highlights
Transaction Highlights The Otjikoto gold project is expected to produce approximately 100,000 ounces of gold per annum (attributable) beginning as early as 2015 Combined production is expected to expand from two operating mines (La Growing Libertad and Limon) producing approximately 140,000 ounc
Slide 7: Share Capital
Share Capital Ownership Breakdown Million Shares (% Basic) Current B2 Shares Issued and Outstanding 344.7 90.3% Shares Issued to Auryx Shareholders 37.2 9.7% Pro Forma Shares Outstanding 381.9 100.0% Shares Held by B2 Directors and Officers 41.0 10.7% 7
Slide 8: Combined Asset Base
Combined Asset Base Limon, Nicaragua (95%) Production 2P: 0.3mm oz Au (attributable) M&I: 0.4mm oz Au (attributable) Inferred: 0.2mm oz Au (attributable) Gramalote, Colombia (49%) Development Inferred: 1.2mm oz Au (attributable) La Libertad, Nicaragua (100%) Otjikoto, Namibia (92%) Production Develo
Slide 9: Proforma Overview
Proforma Overview The acquisition of Otjikoto will make a significant impact to B2Gold resources and future production B2Gold’s measured and indicated resources will increase by approximately 82% 2015 production will increase by approximately 42% based on average analyst estimates Measured and
Slide 10: Proforma 2015 Estimated Production
Proforma 2015 Estimated Production 2015 Estimated Production (k oz AuEq) 1,022 751 405 353 319 300 243 239 224 223 204 182 Based on analyst consensus research AuRico Gold includes production from Northgate Minerals 10
Slide 11: About Auryx Gold
About Auryx Gold > B2GOLD 11
Slide 12: Auryx Asset Overview
Auryx Asset Overview The Auryx projects comprise of 11 licenses totalling ~900,000 ha. The Otjikoto project is an advanced stage gold property located in north-central Namibia AccTer (gold and base metals target) and Top Hat (base metals target) are located 250km east of the Otjikoto deposit 1
Slide 13: Namibia Overview
Namibia Overview Strong mining culture with well established operations: Rio Tinto (Rossing) Anglogold Ashanti (Navachab) Paladin Energy (Langer Heinrich) Stable democratic government Recent consultative mining taxation review Established Infrastructure Local access to road, rail, po
Slide 14: Otjikoto Asset Summary
Otjikoto Asset Summary The Otjikoto project is an advanced stage gold property located in north-central Namibia Otjikoto has a current NI 43-101 indicated resource of 25mm tonnes grading 1.44 g/t Au for 1.2mm oz, and an inferred resource of 16mm tonnes grading 1.31 g/t Au for 0.66mm oz (100% bas
Slide 15: Otjikoto Long Section
Otjikoto Long Section High-Grade Structure at Otjikoto - high potential exists to continue hitting parallel structures with more step out drilling 15
Slide 16: Otjikoto PEA Results
Otjikoto PEA Results The PEA, released in September 2011, demonstrated robust project economics, highlighted by a US$301mm pre-tax NPV, 4.9 year payback period, and a 42% IRR using PEA Results contractor mining Mine Life 10 years The PEA assumed a 5% discount rate, LOM Annual Production 109,000
Slide 17: Otjikoto Development Timeline
Otjikoto Development Timeline 2011 2012 Q3 Q4 Q1 Q2 Q3 Q4 Exploration Activities Drilling 45,000m of drilling Geophysical Surveys Development Activities Infrastructure DFS Level Metallurgical Testwork DFS Level Hydrological Studies DFS Level 43-101 Resource Update ESIA, PPP & EMPR DFS Level Definiti
Slide 18: Pan African Deposits
Pan African Deposits Navachab, owned by AngloGold Ashanti, is approximately 300km from Otjikoto Auryx Gold AngloGold Ashanti Deposit Otjikoto Navachab Background Location Namibia Namibia Information Discovery 1999 1984 Host Rock Metasedimentary Metasedimentary Metamorphism Amphibolite Greenschist
Slide 19: About B2Gold
About B2Gold > B2GOLD 19
Slide 20: About B2Gold Corp.
About B2Gold Corp. Vancouver based gold producer founded as a private company in 2007 by the former executives and management team of Bema Gold Corporation Two producing gold mines in Nicaragua – La Libertad and Limon Projected to produce between 135,000 to 145,000 ounces of gold in 2011 Gro
Slide 21: La Libertad Mine
La Libertad Mine Open pit gold mine Projected to produce between 93,000 to 99,000 ounces of gold in 2011 at an operating cash cost of approximately $440 - $460/oz 2011 production budgeted at 5,500 tonnes of ore per day, average grade of 1.60 g/t, estimated recovery 87% Minimum 7 year mine li
Slide 22: Limon Mine
Limon Mine Open pit and underground gold mine 1,000 tonne per day mill 2010 was the most successful production year in the past six years producing over 40,000 ounces of gold In 2011, projected to produce between 42,000 and 46,000 ounces of gold at a cash cost of approximately $720 - $740/oz
Slide 23: Gramalote Property
Gramalote Property 49% B2Gold – 51% AngloGold Ashanti Joint Venture AngloGold Ashanti is manager of the project Gramalote Excellent infrastructure and location NI 43-101 compliant inferred resource estimate for the Gramalote Ridge Zone of 74.4 Mt grading 1.0 g/t gold for a total of 2.39 millio
Slide 24: Radius Joint Venture
Radius Joint Venture (Trebol, Pavon & San Jose) B2Gold is earning a 60% interest from Radius Gold 22 km NE trending belt of epithermal hot springs style gold mineralization Mineralization traced through a combination of mapping, prospecting, trenching and soil geochemical sampling over a 2.2 k
Slide 25: Cebollati Property
Cebollati Property (Uruguay) B2Gold is earning an 80% interest in the property Exploration rights covering a belt of 50 km long by 10 to 15 km wide Consistent high-grade surface gold mineralization over a 1,800 x 550 m area. Extensive trenching returned impressive gold values An 8,500 m di
Slide 26: B2Gold Management Team
B2Gold Management Team Clive T. Johnson (President, CEO & Director) Clive Johnson leads the strong management team of B2Gold. Mr. Johnson was involved with Vancouver based Bema Gold and its predecessor companies since 1977. When Bema Gold was created by the amalgamation of three Bema group compani
Slide 27: B2Gold Management Team
B2Gold Management Team George Johnson (Senior VP, Operations) George Johnson has the responsibility for overseeing all development and producing properties including both the Limon and La Libertad mines in Nicaragua. He has over 35 years of experience in underground and open pit mine construction
Slide 28: Appendix
Appendix 28
Slide 29: Otjikoto Exploration Targets
Otjikoto Exploration Targets Otjikoto geophysical anomaly strikes N 20° E Otjikoto geophysical anomaly ~10km long Potential extensions to south and southwest Coincident geochemistry and geophysics anomaly on EPL 4309 – along strike from Otjikoto Helimag survey in October to refine targets
Slide 30: Otjikoto Magnetite Zones
Otjikoto Magnetite Zones Geophysics suggests ironoxide mineralization has a potential strike length of 6km Two distinct zones of massive iron-oxides overlying and peripheral to the Otjikoto gold deposit are drill defined and still open The Company plans to drill test the 6km extension of the m
Slide 31: Proforma Reserves & Resources
Proforma Reserves & Resources As at December 31, 2010 MINERAL RESERVES Contained Zone Tonnes Gold Grade (g/t) Gold Ounces LA LIBERTAD Proven & Probable 13,189,498 1.51 642,293 LIMON (1) Proven & Probable 1,949,692 4.48 280,893 Total Proven and Probable Mineral Reserves 15,139,190 923,276 MEASURED AN
Slide 32: Proforma Inferred Resources
Proforma Inferred Resources As at December 31, 2010 INFERRED MINERAL RESOURCES Contained Zone Tonnes Gold Grade (g/t) Gold Ounces LA LIBERTAD Mine Inferred 7,365,245 2.89 683,277 LIMON Mine (1) Inferred 942,428 5.01 151,732 GRAMALOTE (2) Inferred 36,443,750 1.00 1,169,630 OTJIKOTO (3) Inferred 14,33