Batero Gold offers to acquire common shares of CB Gold

Batero Gold Corp. announced last week that it has entered into a support agreement with CB Gold Inc., under which it has agreed to make an offer to acquire all of the outstanding common shares of CB Gold.

"Batero has been evaluating accretive acquisitions for several quarters and we are pleased to make this superior offer to CB Gold shareholders," Batero's President and CEO Roger Moss said. "We believe the Vetas gold project is a significant opportunity for Batero with strong gold grades and excellent exploration upside. The Vetas project has near-term high grade production potential and will give Batero increased flexibility as we move forward towards production."

Under the terms of the agreement, Batero will acquire the CB Gold´s outstanding shares in exchange for 0.3056 of a Batero share and $0.0275 in cash for each share of CB Gold by way of a take-over bid. The offer values the CB Gold equity at approximately $9 million.

"We are pleased CB Gold's Board has unanimously recommended support of Batero's Offer," Felipe Ferraro, lead director of Batero, said. "This transaction provides CB Gold shareholders with a significant premium, participation in a well-funded Colombian-focused gold company and a unique technical proposition to advance the Vetas project.

"Both Batero and CB Gold shareholders will continue to benefit from the expertise of our strategic partner, Consorcio Minero Horizonte and its relationship with the Navarro-Grau Group. The combined company will gain exposure to a portfolio of attractive gold assets in Colombia."

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Batero Gold Corp

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