Shares of Founders Metals Inc. (TSXV: FDR.V) rose more than 12% Thursday after B2Gold Corp. (NYSE:BTG) announced an investment of more than C$12 million into the Canadian junior miner.
Founders has more than 49 mineral claims in New Brunswick and, following Thursday’s trading, reached a market capitalization of nearly $200 million.
B2Gold’s stock price rose 3.6% to 3.12 in Thursday trading.
Founders Metals Inc. shares rose sharply during trading Thursday on news it was receiving an investment from B2Gold. (Source: TradingView)
Founders President and CEO Colin Padget said, “We are very pleased with B2Gold's investment in Founders along with the support and validation it brings to our Antino Gold Project. We look forward to drawing on B2Gold's experience in exploring for, and developing, world-class mining assets in similar geological environments. This broader financing package leaves Founders well positioned to ramp up exploration at Antino, fully funding our planned 2025 exploration budget and the near-term addition of a fourth diamond drill."
Clive Johnson, president and CEO of B2Gold, said the investment is part of the company’s strategy to invest early in discoveries with Tier 1 potential.
“We look forward to lending our strong technical expertise and experience to support the Founders team as they continue to define (Antino Gold Project’s) upside,” he said.
Details of the deal
B2Gold purchased 4.4 million shares of Founders at C$2.75 per share as part of the investment deal. The shares must be held for at least four months, according to a press release from both companies, and B2G will in turn be given a 9.9% stake in the rights related to the Antino project.
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