(Bloomberg) — B2Gold Corp. agreed to buy Sabina Gold & Silver Corp. in a C$1.1 billion ($820 million) stock deal that will give the company its first mining assets in Canada.

The takeover offer comes less than a week after B2Gold Chief Executive Officer Clive Johnson said the Canadian company was looking to buy struggling smaller metals producers and distressed assets to diversify operations beyond Africa and Asia. The deal comes eight days after Newmont Corp.’s $17 billion proposal to acquire Australia’s Newcrest Mining Ltd. in what would be the largest gold deal ever.

B2Gold’s deal gives the firm access to a stretch of deposits in northern Canada’s Nunavut territory as gold producers grapple with declining output and harder-to-mine deposits. B2Gold would get full ownership of the Back River Gold District, which has five mineral claims spanning 225 square miles (583 square kilometers). The most advanced claim is the Goose project, which could yield an average of 223,000 ounces in annual output. B2Gold produces around 1 million ounces of gold a year.

Access to the Back River Gold District will “grow production significantly,” Johnson said in a Monday conference call with analysts. The CEO said the two firms, both based in Vancouver, have been discussing prospects for a deal for nearly five years.

B2Gold is offering 0.38 of a share for each Sabina share, valuing the offer at C$1.87 per share based on Feb. 10 closing prices, according to Monday’s statement. That represents a 45% premium, B2Gold said. The deal is expected to close in the second quarter, pending approvals.

Shares of Sabina rose 10% to C$1.77 at 2:37 p.m. in Toronto. B2Gold fell 3.8%.

B2Gold is using National Bank Financial as its financial advisor and Lawson Lundell LLP and Dorsey & Whitney LLP for legal counsel. Sabina’s financial advisers are BMO Capital Markets and Cormark Securities Inc. and its legal adviser is Blake, Cassels & Graydon LLP.