G Mining Ventures exercises an early royalty buyback on the Tocantinzinho project
All amounts are in USD, unless otherwise indicated
BROSSARD, QC / ACCESSWIRE / November 24, 2021 / G Mining Ventures Corp. (“ GMIN “or the” company “) exercises its right to purchase 1.0% of the total 3.5% royalty on the net smelter return (“ RSN “) held on its Tocantinzinho gold project (the” Project “), resulting in an NSR of 2.5% (the” Right of first redemption “). In consideration for the right of first redemption, the Company will make a cash payment of $ 2.0 million to the original royalty holders pursuant to the 2003 agreement, as subsequently amended (the” Original rights holders The NSR buyout provides increased exposure to the exploration potential of the project, while reducing projected operating costs.
In addition, the royalty agreement allows the Company to repurchase and cancel another 1.0% of the NSR by making an additional payment of $ 3.5 million in cash within 30 days of a construction decision. , which is also payable to the original royalty holders.
Louis-Pierre Gignac, President and CEO of GMIN, commented : “We view the first $ 2.0 million buyout for 1.0% of NSR as a highly accretive transaction for GMIN shareholders based on the modeling and economics as presented in the study of existing feasibility completed in 2019 I , as well as the recent NSR market transactions completed this year. When presented with the right to reduce the effective NSR to 2.5%, we were eager to take this opportunity to further improve the economy and value of our project. After the buyout, GMIN remains well capitalized to update the project’s feasibility study and achieve its goal of moving the project forward to a construction decision for H2-22. “
Timeline and next steps
Over the next 12 months, GMIN will focus on the following activities:
- Completion of a 10,000 meter exploration and drilling program (Q4-21 to Q1-22) I ;
- Completion of project optimization studies and detailed engineering (Q4-21 to Q4-22);
- 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).
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-explored 2 all of the land has additional exploration potential.
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 positive impact of the $ 2.0 million buyback on the economy and value of the project, including its operating costs and the resulting increased exposure to exploration potential;
- The $ 2.0 million buyout being a very accretive transaction for GMIN shareholders;
- The filing of an updated 43-101 technical report in Q1-22;
- The possible positive construction decision for S2-22 and its potential exercise of its second redemption right;
- More generally, the section above entitled “Timetable and next steps”;
- The progress of the project and the authorization status, and the deposit being open at depth; and
- The additional exploration potential of the Project from the “under explored” lot of land.
Forward-looking statements are based on expectations, estimates and projections at the time of the issuance 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. These assumptions include, but are not limited to, the items listed in the section above titled “Timeline and Next Steps”.
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 make a positive construction decision in H2-22, exercise its right to a second buyback and bring the project into commercial production, as future events could differ materially from what is currently anticipated by the Company.
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 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 accompanied by these cautionary statements and those contained in other documents filed by the Company with Canadian securities regulators, including, but not limited to, 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] Technical report of the feasibility study entitled “Technical report of the Tocantinzinho project in Brazil” dated June 21, 2019, filed on SEDAR by Eldorado Gold Corporation on August 9, 2019.
[ii] Detailed in the Company’s press release dated November 8, 2021.