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B2Gold (NYSE:BTG) +4.7% pre-market Thursday after saying it agreed to terms with the Mali government that will allow it to proceed with extension projects at the Fekola complex, including the development of both the underground project at the Fekola Mine and Fekola Regional.
B2Gold (BTG) said all exploration permits for the extension projects will be expedited by the government, which means production from Fekola Regional, which includes the Anaconda pit, is expected to begin in early 2025, and underground production is forecast to start in mid-2025.
Under the deal terms, the miner its Fekola Regional operations will be governed by the 2023 mining code, and Fekola Mine will remain subject to the old 2012 mining code; the government will continue to own a 20% stake in the Fekola complex, with B2Gold (BTG) maintaining an 80% holding.
The company agreed to begin to pay taxes on Fekola Mine fuel imports that were previously exonerated; to offset the cost of these taxes, the government agreed to a 2% reduction in revenue-based taxes and royalties to be applied to the entire Fekola complex.
B2Gold (BTG) said it expects the 2% reduction in revenue-based taxes and royalties to offset substantially all of the cost of Fekola Mine fuel taxes going forward.