All amounts are in USD, unless otherwise indicatedI
- GMIN acquired the Tocantinzinho gold project in Brazil, ready for construction, for $ 115 millionii
- Tocantinzinho is a licensed high grade gold project with a 10 year lifespan and estimated annual production of 187,000 ounces for the first 8 yearsiii
- The management team will build on four successful mine builds in South America, including recently for Newmont Corporation (Merian) and Lundin Gold Inc. (Fruta del Norte)
- GMIN Closes C $ 71 Million ($ 56 Million) Equity Financing
- After Closing, GMIN Estimates Its Cash Balance At Around $ 66 Million
- GMIN builds new intermediate gold producer; Tocantinzinho is stage 1
BROSSARD, Quebec, Oct. 27, 2021 (GLOBE NEWSWIRE) – G Mining Ventures Corp. (“GMIN“or the”company“) is pleased to announce that it has completed the previously announced acquisition of the Tocantinzinho gold project (“Tocantinzinho“or the”Project“) for $ 115 million (the”Acquisition“) of Eldorado Gold Corporation (“Eldorado“). GMIN has acquired all property, assets and rights of Eldorado related to the Project through the acquisition of all of the issued and outstanding shares of Brazauro Recursos Minerais SA (the “Closing“).
Louis-Pierre Gignac, President and CEO of GMIN, commented: âToday marks a good start for GMIN, with Tocantinzinho becoming our growth platform, and the first step towards advancing our strategy to become a major intermediate gold producer. Tocantinzinho has all of the key attributes GMIN was looking for in an initial acquisition, with clear visibility towards short-term construction and commercial production. With over $ 66 million in cash on balance sheet, GMIN is well positioned to update the project’s feasibility study and meet its goal of moving the project forward to a construction decision for H2-22.
Total consideration of $ 115 million includes 46,926,372 common shares of GMIN and $ 20 million in cash paid at closing, as well as a deferred cash payment of $ 60 million (“Deferred consideration) payable, at GMIN’s option, at any time from closing until the first anniversary of the project reaching commercial production. GMIN, at its option, may defer 50% of the Deferred Consideration for 12 months subject to a premium of $ 5 million payable on the second anniversary of commercial production of the Project (such deferred payment totaling $ 35 million). Following completion of the acquisition, Eldorado holds a direct 19.9% ââinterest in GMIN. At the time of this press release, the Company has a total of 235,810,914 common shares issued and outstanding and a cash balance of approximately $ 66 million. For more details on the Transaction, please refer to the Company’s press release dated August 9, 2021.
Timeline and next steps
Over the next 12 months, GMIN will focus on the following activities:
- Completion of project optimization studies and detailed engineering (Q4-21 to Q4-22);
- Completion of two drilling campaigns totaling 10,000 meters (Q4-21 to Q1-22);
- Grade control drilling program reduce the risks of the first years of production by optimizing grade selectivity and mine schedule;
- Exploration drilling program test the potential extensions of known mineralization at depth below the current pit;
- Completion of an updated 43-101 feasibility study (Q1-22);
- Beginning of preliminary work activities on site to support the infrastructure and allow a rapid start of construction activities (Q2-22 to Q3-22);
- Finalization of a global project financing facility to finance construction (H1-22); and
- Positive construction decision (H2-22).
Investor Relations Services
GMIN is also pleased to announce that it has, subject to regulatory approval, retained PI Financial Corp. (“PI“) to provide market making services in accordance with the TSX Venture Exchange (“TSXV“). PI will trade the Company’s securities on the TSX Venture Exchange for the purpose of maintaining an orderly market for GMIN securities. In consideration for the services provided, GMIN will pay PI a monthly cash fee of Cdn $ 3,500. PI will not receive any stock or options as compensation. However, PI and its clients may have or may acquire a direct interest in the securities of GMIN. GMIN and PI are unrelated and unaffiliated entities. PI is a member Investment Industry Regulatory Organization of Canada (IIROC) and can access all Canadian stock exchanges and alternative trading systems. Capital and securities required for any transaction undertaken by PI as principal will be provided by PI The agreement will have a minimum duration of 3 months, at the end of which GMIN can terminate the agreement on 30 days notice.
About G Mining Ventures Corp.
G Mining Ventures Corp. (TSXV: GMIN) is a mineral exploration company engaged in the acquisition, exploration and development of precious metals projects. Its flagship asset, the licensed Tocantinzinho project, is located in the state of Para, Brazil. Tocantinzinho is an open pit gold deposit containing 1.8 million ounces of reserves at 1.4 g / t. The deposit is open at depth and the 688 km under-explored2 all of the land has additional exploration potential.
Full details of the acquisition are set out in the Brazauro Recursos Minerais SA Share Purchase Agreement dated August 8, 2021, which is filed by GMIN under its profile on SEDAR at www.sedar.com.
For more information on GMIN, please visit the website at www.gminingventures.com or contact:
Vice-President, Corporate Development and Investor Relations
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Caution regarding forward-looking information
All statements, other than statements of historical fact, contained in this press release constitute “forward-looking information” and “forward-looking statements” within the meaning of certain securities laws and are based on current expectations and projections. date of this press release. Release. Forward-looking statements contained in this press release include, without limitation, those relating to:
- The stage of the project, the level of risk reduction and the authorization status (notably, its status âready for constructionâ as well as âclear visibilityâ towards construction and production); the estimated production profile of the project and the life of the mine; the growth potential of mineral resource expansion and upward exploration;
- The project being the first step towards GMIN’s vision to become a major intermediate gold producer;
- the possible acquisition by GMIN of additional late-stage development projects and operating mines;
- The potential role of G Mining Services Inc. (âGMSâ) to assist GMIN in bringing the project into commercial production (including âleveragingâ the mine’s construction history);
- Filing of an updated 43-101 technical report;
- The possible positive construction decision for the start of S2-22; and
- More generally, the section above entitled âTimetable and next stepsâ.
Forward-looking statements are based on expectations, estimates and projections at the time of this press release. Forward-looking statements are necessarily based on a number of estimates and assumptions which, although considered reasonable by the Company at the time of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These estimates and assumptions may prove to be inaccurate. Phone assumptions include, but are not limited to, the items listed in the section above titled âTimeline and Next Stepsâ.
Many of these uncertainties and contingencies can directly or indirectly affect, and could cause actual results to differ materially from those expressed or implied in forward-looking statements. There can be no assurance that the Company will bring the project into commercial production and that it will acquire any other significant precious metal asset, as future events could differ materially from what is currently anticipated by the Company; there can also be no assurance that the Company will be able to maintain an orderly trading market for its Common Shares, with the assistance of PI or otherwise.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and there are risks that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect. not the future experience. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans for the future. Readers are cautioned not to place undue reliance on these forward-looking statements, as a number of important risk factors and future events could cause actual results to differ materially from beliefs, plans, objectives, expectations, expectations, estimates, assumptions and expressed intentions. in these forward-looking statements. All forward-looking statements contained in this press release are qualified by these cautionary statements and those contained in other documents filed by the Company with securities regulators in Canada, including, but not limited to , the caveats in the relevant section of Management’s Discussion and Analysis. The Company cautions that the foregoing list of factors that may affect future results is not exhaustive and that new unforeseeable risks may arise from time to time. The Company disclaims any intention or obligation to update or revise any forward-looking statement or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.
I Figures assume USD: CAD exchange rate of 1.25.
ii Includes the closing issuance of 46,926,372 common shares of GMIN to Eldorado valued at $ 34.7 million using a net issue price of CA $ 0.924, a cash payment of $ 20 million made to the closing and deferred consideration of $ 60 million.
iii Source: âTechnical Report Tocantinzinho Project Brazilâ dated June 21, 2019, filed on SEDAR by Eldorado on August 9, 2019. Louis-Pierre Gignac, President and CEO of GMIN, a qualified person within the meaning of Canadian Standard 43- 101, reviewed the report on behalf of the Company and approved the technical disclosure contained in this press release. The Company will file an updated technical report on the project, in accordance with NI 43-101, by February 4, 2022.