VANCOUVER, BC, June 24, 2021 /PRNewswire/ - B2Gold Corp.
(TSX: BTO) (NYSE AMERICAN: BTG) (NSX: B2G) ("B2Gold" or the
"Company") announces an update on the Menankoto
exploration permit (the "Menankoto Permit"), which forms a
part of the Anaconda area and is
located 20 kilometres north of the Fekola Mine license area. The
Company's Malian subsidiary, Menankoto SARL ("Menankoto")
has formally commenced international arbitration proceedings
against the Republic of Mali in
accordance with Article 36 of the Convention on the Settlement of
Investment Disputes Between States and Nationals of Other States
("ICSID Convention") and the Rules of Procedure for the
Institution of Conciliation and Arbitration Proceedings (the
"Institution Rules"). The arbitration has been commenced
pursuant to the arbitration clause set out in Section 31 of the
Menankoto mining convention (the "Convention") governed by
the 2012 Malian Mining Code ("2012 Mining Code"), on the
basis that the Republic of Mali
breached its obligations to Menankoto under the Convention and
under the 2012 Mining Code. Based on the terms of the Convention,
the arbitration will be conducted by the International Centre for
Settlement of Investment Disputes in Paris, France.
Menankoto originally filed an extension application for the
Menankoto Permit in October 2020 in
accordance with the requirements of the Convention and the 2012
Mining Code, under which the Menankoto Permit was originally
issued. Under the Convention and the 2012 Mining Code, Menankoto
was entitled to a further one-year extension of the Menankoto
Permit. The application was refused on the basis that, according to
the Malian authorities, the 2019 Malian Mining Code ("2019
Mining Code") allegedly now applied to the Menankoto Permit.
Menankoto complied in good faith with the instructions of the
Malian authorities, without prejudice to its rights under the
Convention and the 2012 Mining Code, and was the first applicant to
submit an application for a new exploration permit covering the
Menankoto Permit area under the 2019 Mining Code. Under the 2019
Mining Code, Menankoto, being the first applicant for the new
permit, was entitled to the new exploration permit in accordance
with the "first come, first served" principle of the 2019 Mining
Code.
Menankoto was advised in early March
2021 that the new permit would not be granted, and
subsequently advised that a third party had been granted a new
exploration permit covering the perimeter of the Menankoto Permit.
Menankoto formally notified the Malian Government of the dispute on
March 15, 2021, as required under the
Convention, including the Company's intention to exercise all
available legal rights to correct the improper issuance of a permit
covering the Menankoto Permit area to a third party. On
May 21, 2021, the Company was advised
that the then current Malian Prime Minister had withdrawn the
Menankoto exploration permit decree issued to the third party,
resulting in the Menankoto permit once again being available for
issuance. B2Gold welcomed this decision which was consistent with
the rule of law. On May 31, 2021,
based on the guidance from the Mines and Geology National Directory
("DNGM"), Menankoto submitted a reiteration of its original
Menankoto Permit application, without prejudice to the original
application. However, on June 18,
2021, Menankoto received a letter from the Ministry of
Mines, Energy and Water incorrectly rejecting the application due
to the fact that the application had been the subject of a court
decision against Menankoto.
Menankoto had previously initiated two legal proceedings in the
Malian Supreme Court. The first proceeding was an emergency
injunction requesting the suspension of the refusal to review the
Menankoto application and the suspension of the permit granted to a
third party until the court has made a final decision. The second
proceeding was a request for the cancellation of the refusal to
review the Menankoto application and cancellation of the permit
granted to a third party. The emergency injunction was not granted
by the Malian Supreme Court, but no ruling was made on the
substantive merits of the action or the second proceeding.
Following the Prime Minister's decision outlined above to withdraw
the Menankoto exploration permit decree in favour of a third party,
on May 24, 2021, Menankoto withdrew
from the second court proceedings as the basis of the claim no
longer existed, that being issuance of a permit covering the
Menankoto Permit area was no longer granted to a third party.
The Company strongly believes that Menankoto is entitled to a
renewal of the Menankoto Permit under applicable law and
accordingly is pursuing a legal remedy under the Convention and may
pursue, as required, all other available legal remedies, including
international arbitration under the Canada-Mali Foreign Investment
Promotion and Protection Agreement. Notwithstanding the
commencement of this arbitration, the Company is committed to
continuing discussions with the Malian Government to resolve this
issue.
The operations at the Fekola Mine, which is situated on a
separate mining license 20 kilometres from the Menankoto Permit and
projected to produce 530,000 to 560,000 ounces of gold in 2021,
continue normally and have not been impacted by the dispute
relating to the Menankoto Permit. In addition, the Fekola Mine has
not included the Mineral Resources from the Anaconda area (comprised of the Menankoto
Permit and the Bantako North permit) in the current Fekola life of
mine plan. The Bantako North permit area contains a significant
portion of the Mamba deposit saprolite material, and preliminary
planning by the Company has demonstrated that a pit situated on the
Bantako North permit area could provide for saprolite material for
1.5 to 2 years to feed the Fekola mill commencing in 2022 subject
to obtaining all necessary permits and completion of a final mine
plan. This additional feed to the Fekola mill would benefit all
stakeholders, including the State of
Mali, B2Gold's 20% partner at the Fekola Mine.
The Company has conducted extensive exploration on the Menankoto
deposit part of the Anaconda Area)
for the past seven years, with a considerable investment to date of
approximately US$27 million, detail
of which were reported on a quarterly basis to the DNGM. The
Company had planned a 2021 exploration budget for the Menankoto
deposit of $8.3 million, out of a
total Mali exploration budget of
$26.4 million. B2Gold is one of the
largest Canadian investors in Mali
and the Fekola Mine is a flagship investment in the country's
mining sector. In 2020, B2Gold produced 622,518 ounces of gold, an
estimated 27% of Mali's industrial
gold production, from the Fekola Mine, generating approximately
US$300 million in revenues for the
State of Mali, comprised of taxes
and dividends. Since the Fekola Mine commenced production in 2017,
it has generated approximately US$580
million in revenues for the State
of Mali.
The Company's total investment in Mali to date is more than US$1 billion and B2Gold is a significant employer
with more than 2,200 employees, of which more than 93% are Malian
nationals. The Company paid approximately US$64 million in employee salaries and benefits
in 2020. Through its investment, B2Gold has provided major economic
benefits including job creation, training, capacity building and
community investments, including a recently announced US$10 million Signature Agricultural Business
Community Project to benefit local communities and provide
sustainable livelihoods going forward.
Since the Company commenced its investment in Mali, B2Gold has always enjoyed a
positive and mutually beneficial relationship with the Government
of Mali. Most recently, B2Gold
partnered with the Government of Mali to assist the people of Mali facing challenges created by the COVID-19
pandemic, as well as its impact on the mining sector. B2Gold
continues to explore additional ways in which it might help the
Government deal with the impact of the pandemic.
About B2Gold Corp.
B2Gold is a low-cost international senior gold producer
headquartered in Vancouver,
Canada. Founded in 2007, today, B2Gold has operating gold
mines in Mali, Namibia and the
Philippines and numerous exploration and development
projects in various countries including Mali, Colombia, Burkina
Faso, Finland and
Uzbekistan. B2Gold forecasts total
consolidated gold production of between 970,000 and 1,030,000
ounces in 2021.
On Behalf of B2GOLD CORP.
"Clive T. Johnson"
President & Chief Executive Officer
For more information on B2Gold please visit the Company website
at www.b2gold.com or contact:
Ian
MacLean
|
Katie Bromley
|
Vice President,
Investor Relations
|
Manager,
Investor Relations & Public Relations
|
604-681-8371
|
604-681-8371
|
imaclean@b2gold.com
|
kbromley@b2gold.com
|
The Toronto Stock Exchange and NYSE American LLC neither
approve nor disapprove the information contained in this news
release.
Production results and production guidance presented in this
news release reflect total production at the mines B2Gold operates
on a 100% project basis. Please see our Annual Information Form
dated March 30, 2021 for a discussion
of our ownership interest in the mines B2Gold operates.
This news release includes certain "forward-looking
information" and "forward-looking statements" (collectively
forward-looking statements") within the meaning of applicable
Canadian and United States
securities legislation, including: projections; outlook; guidance;
forecasts; estimates; and other statements regarding future or
estimated financial and operational performance, gold production
and sales, revenues and cash flows, and capital costs (sustaining
and non-sustaining) and operating costs, including projected cash
operating costs and AISC, and budgets
on a consolidated and mine by mine basis; the impact of the
COVID-19 pandemic on B2Gold's operations, including any
restrictions or suspensions with respect to our operations and the
effect of any such restrictions or suspensions on our financial and
operational results; the ability of the Company to successfully
maintain our operations if they are temporarily suspended,
and to restart or ramp-up these operations efficiently and
economically, the impact of COVID-19 on the Company's workforce,
suppliers and other essential resources and what effect those
impacts, if they occur, would have on our business, our planned
capital and exploration expenditures; future or estimated
mine life, metal price assumptions, ore grades or sources, gold
recovery rates, stripping ratios, throughput, ore processing;
statements regarding anticipated exploration, drilling,
development, construction, permitting and other activities or
achievements of B2Gold; and including, without limitation: total
consolidated gold production of between 970,000 and 1,030,000
ounces in 2021; gold production from the Fekola Mine of between
530,000 and 560,000 ounces in 2021, and the Bantako North permit
area providing saprolite material for 1.5 to 2 years to feed the
Fekola mill commencing in 2022 subject to obtaining all necessary
permits and completion of a final mine plan. All statements
in this news release that address events or developments that we
expect to occur in the future are forward-looking statements.
Forward-looking statements are statements that are not historical
facts and are generally, although not always, identified by words
such as "expect", "plan", "anticipate", "project", "target",
"potential", "schedule", "forecast", "budget", "estimate", "intend"
or "believe" and similar expressions or their negative
connotations, or that events or conditions "will", "would", "may",
"could", "should" or "might" occur. All such forward-looking
statements are based on the opinions and estimates of management as
of the date such statements are made.
Forward-looking statements necessarily involve assumptions,
risks and uncertainties, certain of which are beyond B2Gold's
control, including risks associated with or related to: the
duration and extent of the COVID-19 pandemic, the effectiveness of
preventative measures and contingency plans put in place by the
Company to respond to the COVID-19 pandemic, including, but not
limited to, social distancing, a non-essential travel ban, business
continuity plans, and efforts to mitigate supply chain disruptions;
escalation of travel restrictions on people or products and
reductions in the ability of the Company to transport and refine
doré; the volatility of metal prices and B2Gold's common shares;
changes in tax laws; the dangers inherent in exploration,
development and mining activities; the uncertainty of reserve and
resource estimates; not achieving production, cost or other
estimates; actual production, development plans and costs differing
materially from the estimates in B2Gold's feasibility and other
studies; the ability to obtain and maintain any necessary permits,
consents or authorizations required for mining activities;
environmental regulations or hazards and compliance with complex
regulations associated with mining activities; climate change and
climate change regulations; the ability to replace mineral reserves
and identify acquisition opportunities; the unknown liabilities of
companies acquired by B2Gold; the ability to successfully integrate
new acquisitions; fluctuations in exchange rates; the availability
of financing; financing and debt activities, including potential
restrictions imposed on B2Gold's operations as a result thereof and
the ability to generate sufficient cash flows; operations in
foreign and developing countries and the compliance with foreign
laws, including those associated with operations in Mali, Namibia, the
Philippines, Colombia and
Burkina Faso and including risks
related to changes in foreign laws and changing policies related to
mining and local ownership requirements or resource nationalization
generally, including in response to the COVID-19 outbreak; remote
operations and the availability of adequate infrastructure;
fluctuations in price and availability of energy and other inputs
necessary for mining operations; shortages or cost increases in
necessary equipment, supplies and labour; regulatory, political and
country risks, including local instability or acts of terrorism and
the effects thereof; the reliance upon contractors, third parties
and joint venture partners; the lack of sole decision-making
authority related to Filminera Resources Corporation, which owns
the Masbate Project; challenges to title or surface rights; the
dependence on key personnel and the ability to attract and retain
skilled personnel; the risk of an uninsurable or uninsured loss;
adverse climate and weather conditions; litigation risk;
competition with other mining companies; community support for
B2Gold's operations, including risks related to strikes and the
halting of such operations from time to time; conflicts with small
scale miners; failures of information systems or information
security threats; the ability to maintain adequate internal
controls over financial reporting as required by law, including
Section 404 of the Sarbanes-Oxley Act; compliance with
anti-corruption laws, and sanctions or other similar measures;
social media and B2Gold's reputation; risks affecting Calibre
having an impact on the value of the Company's investment in
Calibre, and potential dilution of our equity interest in Calibre;
as well as other factors identified and as described in more detail
under the heading "Risk Factors" in B2Gold's most recent Annual
Information Form, B2Gold's current Form 40-F Annual Report and
B2Gold's other filings with Canadian securities regulators and the
U.S. Securities and Exchange Commission (the "SEC"), which may be
viewed at www.sedar.com and www.sec.gov, respectively (the
"Websites"). The list is not exhaustive of the factors that may
affect B2Gold's forward-looking statements
B2Gold's forward-looking statements are based on the
applicable assumptions and factors management considers reasonable
as of the date hereof, based on the information available to
management at such time. These assumptions and factors include, but
are not limited to, assumptions and factors related to B2Gold's
ability to carry on current and future operations, including: the
duration and effects of COVID-19 on our operations and
workforce; development and exploration activities; the timing,
extent, duration and economic viability of such operations,
including any mineral resources or reserves identified thereby; the
accuracy and reliability of estimates, projections, forecasts,
studies and assessments; B2Gold's ability to meet or achieve
estimates, projections and forecasts; the availability and cost of
inputs; the price and market for outputs, including gold; foreign
exchange rates; taxation levels; the timely receipt of necessary
approvals or permits; the ability to meet current and future
obligations; the ability to obtain timely financing on reasonable
terms when required; the current and future social, economic and
political conditions; and other assumptions and factors generally
associated with the mining industry.
B2Gold's forward-looking statements are based on the opinions
and estimates of management and reflect their current expectations
regarding future events and operating performance and speak only as
of the date hereof. B2Gold does not assume any obligation to update
forward-looking statements if circumstances or management's
beliefs, expectations or opinions should change other than as
required by applicable law. There can be no assurance that
forward-looking statements will prove to be accurate, and actual
results, performance or achievements could differ materially from
those expressed in, or implied by, these forward-looking
statements. Accordingly, no assurance can be given that any events
anticipated by the forward-looking statements will transpire or
occur, or if any of them do, what benefits or liabilities B2Gold
will derive therefrom. For the reasons set forth above, undue
reliance should not be placed on forward-looking
statements.
View original
content:http://www.prnewswire.com/news-releases/b2gold-commences-international-arbitration-proceedings-against-the-republic-of-mali-relating-to-the-menankoto-permit-301319819.html
SOURCE B2Gold Corp.