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G Mining Ventures Exercises Early Buydown of Royalty on Tocantinzinho Project
All amounts are in USD unless stated otherwise BROSSARD, QC / ACCESSWIRE / November 24, ...
About this update from G Mining Ventures Corp
[{"type":"text","content":"G Mining Ventures Exercises Early Buydown of Royalty on Tocantinzinho ProjectAll amounts are in USD unless stated otherwiseBROSSARD, QC / ACCESSWIRE / November 24, 2021 / G Mining Ventures Corp. (\" GMIN \" or the \" Corporation \") is exercising its right to buydown 1.0% of the total 3.5% net smelter return royalty (\" NSR \") held on its Tocantinzinho Gold Project (the \" Project \"), resulting in a NSR of 2.5% (the \" First Buydown Right \"). In consideration for the First Buydown Right, the Corporation will make a cash payment of $2.0 million to the original royalty holders pursuant to the agreement dating back to 2003, as subsequently amended (the \" Original Royalty Holders \"). The buydown of the NSR provides increased exposure to the Project's exploration potential, while reducing the projected operating costs.Furthermore, the royalty agreement permits the Corporation to repurchase and cancel a further 1.0% of the NSR by making an additional $3.5 million cash payment within 30 days of a construction decision, which is also payable to the Original Royalty Holders.Louis-Pierre Gignac, President & CEO of GMIN, commented : \"We view the first $2.0 million buydown for 1.0% of the NSR as a highly accretive transaction to GMIN's shareholders based on the modelling and economics as presented in the existing feasibility study completed in 2019 i , as well as the recent market transactions of the NSR completed this year. When presented with the right to reduce the effective NSR to 2.5%, we were eager to take advantage of this opportunity to further improve the economics and value of our Project. Post buydown, GMIN remains well capitalized to update the Project's feasibility study and meet its target of advancing the Project to a construction decision for H2-22.\"Timetable and Next StepsOver the next 12 months, GMIN will be focused on the following activities:Completion of a 10,000 meter exploration and drilling program (Q4-21 through Q1-22) ii ;Completion of project optimization studies and detailed engineering (Q4-21 through Q4-22);Completion of an updated 43-101 feasibility study (Q1-22);Commencement of onsite early works activities to support infrastructure and allow for rapid start of construction activities (Q2-22 through Q3-22);Finalization of a comprehensive project finance facility to fund construction (H1-22); andPosi...