G Mining Ventures says Brazil gold mine is 93% complete

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G Mining Ventures Corp. [GMIN-TSXV, GMINF-OTCQB] has released an update in its 100%-owned its Tocantinzinho gold project in Para State, Brazil.

The project is 93% complete and remains on track and on budget for commercial production in the second half of 2024, the company said in a press release. It said pre-production mining continues to progress above budget, having excavated 12.4 million tonnes of material from the starter pit, including 1.5 million tonnes of ore to the stockpile.

Referring to the budget, the company said the total spend to date of US$447 million, with open commitments of US$11 for a total commitment to date of US$458 million, is tracking in line with the feasibility study.

There are currently 1,507 employees and contractors employed at the project, after peaking at 1,220 in August, 2023.

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.

G Mining shares advanced on the news, rising 0.95% or $0.02 to $2.12. The shares are currently trading in a 52-week range of $2.34 and $1.01.

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