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B2Gold Corp. BTO-T has signed a deal to buy Sabina Gold and Silver Corp. SBB-T in an all-stock deal valued at $1.1-billion.

Sabina owns the Back River gold district in Nunavut including five mineral claims across an 80-kilometre belt.

The company’s Goose project in the district is fully permitted and construction ready.

Under the deal, Sabina shareholders will receive 0.3867 of a share of B2Gold for each Sabina share. The offer was valued at $1.87 per share based on B2Gold’s closing share price of $4.83 on Friday. Sabina shares closed at $1.58.

The deal requires approval by a two-thirds majority vote by Sabina shareholders at a special meeting expected to be held in April.

Existing B2Gold shareholders will own about 83 per cent of the combined company, while former Sabina shareholders will own 17 per cent.

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