Business
G Mining Ventures Completes the Acquisition of the Tocantinzinho Gold Project
All amounts are in USD unless stated otherwisei GMIN has acquired the construction ready Tocantinzinho Gold Project in Brazil for $115 millionii Tocantinzinho i
About this update from G Mining Ventures Corp
[{"type":"text","content":" All amounts are in USD unless stated otherwisei GMIN has acquired the construction ready Tocantinzinho Gold Project in Brazil for $115 millionii Tocantinzinho is a permitted, high-grade gold project with a 10-year reserve life with an estimated annual production of 187,000 ounces for the first 8 yearsiii Leadership team to leverage four successful mine builds in South America, including recently for Newmont Corporation (Merian) and Lundin Gold Inc. (Fruta del Norte) GMIN completed a C$71 million ($56 million) equity financing Post closing, GMIN estimates its cash balance to be approximately $66 million GMIN is building a new intermediate gold producer; Tocantinzinho is Step 1 BROSSARD, Québec, Oct. 27, 2021 (GLOBE NEWSWIRE) -- G Mining Ventures Corp. (“GMIN” or the “Corporation”) is pleased to announce that it has completed its previously announced acquisition of the Tocantinzinho Gold Project (“Tocantinzinho” or the “Project”) for $115 million (the “Acquisition”) from Eldorado Gold Corporation (“Eldorado”). GMIN acquired all of Eldorado’s property, assets, and rights related to the Project through the acquisition of all the issued and outstanding shares of Brazauro Recursos Minerais S.A. (the “Closing”). Louis-Pierre Gignac, President & CEO of GMIN, commented: “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. 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 Project’s feasibility study and meet its target of advancing the Project to a construction decision for H2-22.” The aggregate consideration of $115 million is comprised of 46,926,372 common shares of GMIN and $20 million in cash paid at Closing, as well as a deferred $60 million cash payment (“Deferred Consideration) payable, at GMIN’s option, anytime from Closing until the first anniversary of the Project achieving commercial production. GMIN, at its option, may defer 50% of the Deferred Consideration for 12 months subject to a $5 million premium payable on the second anniversary of the Project achieving commercial produ...