B2Gold Corp. has signed a deal to buy Sabina Gold and Silver Corp. 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.

This report by The Canadian Press was first published Feb. 13, 2023.