B2Gold invests $12.1 million in Founders Metals
B2Gold Corp. [BTO-TSX, BTG-NYSE American, B2G-NSX] has agreed to make a $12.1 million investment in Founders Metals Inc. [FDR-TSXV], that will leave it with a 5.0% stake in the South America-focused explorer.
The announcement comes just 24 hours after Founders unveiled details of a $20 million bought deal private placement that will be used ramp up exploration activity at the company’s Antino Gold Project in Suriname, South America, the company said in a press release.
In its earlier press release, Founders said it has agreed to terms of a non-binding letter of intent with a major precious metals producer that it did not name for a 5.0% equity investment. It said complete details of the transaction would follow in separate press releases.
B2Gold is acquiring 4.4 million shares of Founders priced at $2.75 per share. It will also enter into an investor rights agreement, that includes rights related to B2Gold increasing its ownership to a maximum of 9.9%, rights related to a technical collaboration on the Antino Gold Project and the opportunity to collaborate on new projects in the Guiana Shield.
“This investment continues B2Gold’s strategy of identifying and investing in early discoveries with Tier 1 potential,’’ said B2Gold President and CEO Clive Johnson.
As a result of the B2Gold investment, Founders said it will raise a total of $32.1 million, a move that will fully fund the company’s planned 2025 budget.
News that B2Gold is investing in Founders came after the close of trading on October 10, 2024, when Founders shares closed at $2.75. The shares currently trade in a 52-week range of $3.13 and 76 cents.
On October 10, 2024, B2Gold shares closed at $4.28 and currently trade in a 52-week range of $4.74 and $3.18.
“We are very pleased with B2Gold’s investment in Founders along with the support and validation it brings to our Antino Project,’’ said Founders President and CEO Colin Padget. “We look forward to drawing on B2Gold’s experience in exploring for, and developing world-class mining asset in similar geological environments,’’ he said. “This broader financing packager leaves Founders well positioned to ramp up exploration at Antino, fully funding our planned 2025 exploration budget and near term addition of a fourth diamond drill.’’
The 20,000-hectare Antino project is Founders’ flagship project. Previous work has included over 30,000 metres of historical drilling, 35,000 gold-in-soil auger samples, and property wide aeromagnetic survey data, plus a 2022 LiDar survey.
Antino is the most advanced exploration project in Suriname. It is located in an area where historical surface/alluvial gold mining has produced over 500,000 ounces of gold. The company drilled 10,000 metres in 2023 and is fully financed for drilling in 2024.