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G Mining Announces Acquisition of Tocantinzinho Gold Project in Brazil

G Mining Ventures Corp. (GMIN) reports that it has finished the acquisition of the Tocantinzinho Gold Project for $115 million from Eldorado Gold Corporation. 

G Mining Announces Acquisition of Tocantinzinho Gold Project, gold, mining

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GMIN secured all of Eldorado’s property, assets, and rights associated with the Tocantinzinho Gold Project by acquiring all the issued and outstanding shares of Brazauro Recursos Minerais S.A. (the Closing).

Today marks a strong beginning for GMIN, with Tocantinzinho becoming our platform for growth, and the first step towards advancing our strategy of becoming a leading intermediate gold producer.

Louis-Pierre Gignac, President and CEO, G Mining Ventures Corp.

Tocantinzinho has all the key attributes GMIN was looking for in an initial acquisition, with clear visibility towards near-term construction and commercial production. With over $66 million of cash on the balance sheet, GMIN is well positioned to update the Projects feasibility study and meet its target of advancing the Project to a construction decision for H2-22,” added Gignac.

The combined consideration of $115 million includes 46,926,372 common shares of GMIN and $20 million in cash paid at Closing, together with a deferred cash payment of $60 million payable, at GMIN’s option, anytime from Closing until the first anniversary of the Project realizing commercial production.

Potentially, GMIN might defer 50% of the Deferred Consideration for 12 months on a premium of $5 million that can be paid on the second anniversary of the Project realizing commercial production (such deferred payment summing $35 million).

Once the Acquisition is finalized, Eldorado will own a 19.9% direct equity interest in GMIN. Currently, the Corporation owns 235,810,914 general shares issued and outstanding, as well as a cash balance of around $66 million.

Timetable and Next Steps

In the following 12 months, GMIN will concentrate on the following activities:

  • Finishing of project optimization studies and elaborate engineering (Q4-21 through Q4-22)
  • Completion of two drilling campaigns summing 10,000 m (Q4-21 through Q1-22)
    • Grade control drilling program for de-risking previous years of production by improving mine schedule and grade selectivity
    • Exploration drilling program to look for possible extensions of the well-known mineralization at depth underneath the existing pit
  • Consummation of an updated 43-101 feasibility study (Q1-22)
    • Starting of onsite early works activities to assist infrastructure and enable quick commencement of construction activities (Q2-22 through Q3-22);
    • Finalization of an extensive project finance facility to financially support construction (H1-22)
  • Positive construction decision (H2-22)

Source: https://www.gminingventures.com/en-us/

Megan Craig

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Megan Craig

Megan graduated from The University of Manchester with a B.Sc. in Genetics, and decided to pursue an M.Sc. in Science and Health Communication due to her passion for combining science with content creation. As part of her studies, Megan partnered with Jodrell Bank Discovery Centre as a Digital Marketing Assistant, producing content and updating sections of their website. In her spare time, she loves to travel, exploring each location's culture and history - including the local cuisine. Her other interests include embroidery, reading fiction, and practicing her Japanese language skills.

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