Ancouver-based B2Gold will sell its right to an interest in two exploration licence areas surrounding Kinross Gold's Kupol mine, in Russia, to the larger miner, the two companies announced on Friday.
Under the terms of a previous agreement, Kinross had committed to secure a 37,5% joint-venture interest for B2Gold in the Kupol East and West exploration licence areas.
Those obligations will be terminated under the new deal, which is expected to close in August.
The Kupol mine and the East and West exploration licences are owned by the Chukotka Mining & Geological Company, in which Kinross holds 75% and the rest is owned by a local government-owned enterprise.
Kinross will pay B2Gold $33-million upfront, plus $15-million in contingent payments for each incremental million ounces of gold of NI 43-101-compliant reserves contained in the licence areas, up to a maximum of nine-million ounces.
B2Gold will also receive payments equal to 1,5% of net smelter returns after production begins on the East and West licences, although Kinross can repurchase the royalty for $30-million.
B2Gold's right to Kupol exploration licences
