G Mining hits final permitting milestone in Brazil
G Mining Ventures Corp. [GMIN-TSXV, GMINF-OTCQB] said it has received the operational licenses for its 100%-owned its Tocantinzinho gold project in Para State, Brazil. The licenses are the last remaining permitting milestone for commercial production.
The company also said the project remains on time and budget for commercial production in the second half of 2024. The licenses received from the Para State Environmental Agency, include the operating licence for construction activities and authorizes the mine to commence operations at full capacity.
“This final step in the regulatory approval process for TZ is a testament to Brazil’s mining-friendly business environment, it’s well-structured permitting process and our team’s commitment to excellence in everything we do,’’ said G Mining President and CEO Louis-Pierre Gignac.
G Mining shares were little changed on the news, easing 0.95% or $0.08 to $8.35. The shares are currently trading in a 52-week range of $10.83 and $4.36.
Tocantinzinho is expected to be a low-cost, conventional open pit mining and milling operation.
A feasibility study announced in February, 2022, outlines total gold production of 1.8 million ounces of gold over 10.5 years, resulting in average annual production of 174,700 ounces with an all-in-sustaining cost per ounce of US$681 and an initial capital cost of US$458 million.
The mine plan is based on proven and probable reserves of 48.7 million tonnes at an average grade of 1.31 g/t gold or 2.04 million contained gold ounces as of December 10, 2021.
G Mining Ventures was in the news recently when it unveiled details of a US$481 million construction financing package for Tocantinzinho.
The package was expected to provide a pathway to production. It includes a US$250 million goal stream with Franco Nevada Mining Corp. [FNV-TSX, NYSE], which has also agreed to provide G Mining Ventures with a US$75 million secured loan, and to subscribe for US$27.5 million worth of G Mining common shares (44.6 million shares as part of G Ventures $116.4 million equity financing via a non brokered private placement priced at 80 cents per share).
Franco-Nevada is providing US$352.5 million of the total US$481 million package. The balance consists of equity private placements to two strategic investors, including $68.8 million to La Mancha Investments S.a.r.l., and $20 million to Eldorado Gold Corp. [ELD-TSX; EGO-NYSE], as well as up to $40 million worth of equipment financing with Caterpillar Financial Services.
As a result of the financing package and G Mining Ventures’ cash on hand of $54 million as at June 30, 2022, G Mining said it would have total committed capital of $535 million, an amount that exceeds the remaining development capital for Tocantinzinho.