Papillon offers incentive for shareholders

Perth-based Papillon Resources has agreed to amend the terms of its merger agreement with B2Gold to provide a new incentive for some of its shareholders.

Papillon said it would open a facility that would allow shareholders who hold 200,000 shares or less in the company to have their B2Gold shares issued to and sold by a nominated sales agent immediately after the scheme is implemented, and to receive the proceeds of the sale in in Australian dollars. 

In June, B2Gold placed its bid to takeover Papillon for $615 million, with Papillon shareholders receiving 0.661 B2Gold shares for every Papillon share held.

Papillon’s board of directors, led by director Ian Middlemas, unanimously approved the takeover bid, pledging to vote in favour of the deal when it goes before shareholders for approval in September.

Papillon shares were down 2.67 per cent to $1.82 per share at 1:15pm.