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.