G Mining raises $50 million, tables Reunion Gold update
G Mining Ventures Corp. [GMIN-TSXV, GMINF-OTCQB] said it has closed a private placement financing that raised $50 million and received final Ontario Superior Court of Justice approval for a plan of arrangement with Reunion Gold Corp. [RGD-TSXV].
Under the terms of the previously announced private placement, G Mining issued 15.1 million common shares to La Mancha Investments Sarl and Franco Nevada Mining Corp. [FNV-TSX, NYSE], priced at $2.279 per share.
On Friday, G Mining shares eased 2.85% or $0.075 to $2.55 on volume of 152,180. The shares are currently trading in a 52-week range of $2.67 and $1.06.
Under the plan of arrangement announced in April 2024, G Mining Ventures, agreed to acquire Reunion Gold for roughly $875 million, adding the flagship Oko West gold project in Guyana to its portfolio.
Under the arrangement, a new entity was formed and will hold and manage the combined business of G Mining and Reunion Gold. The new shares of G Mining will, subject to the approval of the Toronto Stock Exchange, be listed on the TSX in substitution of the common shares. The arrangement is expected to close by July 15, 2024. It is expected that two or three business days after the closing of the arrangement, the common shares of the new G Mining will be listed and posted for trading on TSX under the symbol GMIN, in substitution of the currently listed common shares.
The combination of the two companies is expected to set the stage or the creation of a leading intermediate gold producer.
Reunion’s flagship Oko West project is located in the Cuyuni Mining District, about 95 kilometres west of Georgetown and is accessible by roads and trails from the town of Bartica or by boat using the Cuyuni River.
The project covers 11,900 acres of mineral rights held by local Guyanese entrepreneurs. Reunion entered into agreements entitling it to conduct exploration activities and acquire a 100% in the project area.
Back in June, 2023, the company announced an initial pit-constrained mineral resource estimate for the Kairuni zone at Oko West. It consists of 2.47 million ounces of gold in the indicated mineral resource category, grading 1.84. g/t gold. On top of that is an inferred resource of 1.76 million ounces of gold at a grade of 2.02 g/t gold.
G Mining recently announced the first gold pour at its 100%-owned its Tocantinzinho gold project in Para State, Brazil. It previously said the project remains on track and on budget for commercial production in the second half of 2024.
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.