Market Chatter: B2Gold Considers Purchase of Idled Gold Mine in Zimbabwe

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Market Chatter: B2Gold Considers Purchase of Idled Gold Mine in Zimbabwe

posted on May 23, 2019 04:52PM

2019-05-23 04:02:10 PM ET (MT Newswires)

04:02 PM EDT, 05/23/2019 (MT Newswires) -- B2Gold (BTG) is considering the purchase of the idled Shamva gold mine in Zimbabwe, if it may be exempted from a law that requires producers to sell all the metal to the country's central bank, Bloomberg reported on Thursday, citing sources familiar with the matter.

If B2Gold proceeds with the purchase from owner Metallon, it will invest $150 million to $200 million in developing the mine, one of the sources said. The company is willing to pay about a third of the book value Shamva, which was last assessed at $167 million seven years ago, the source added.

Securing an exemption from the aforementioned law may open the way for more investments from gold producers in Zimbabwe, when a number of companies have shut down mines due to the sales requirements and the country's economic crisis.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)