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G Mining announces financing package for Tocantinzinho Gold Project

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Global Mining Review,

G Mining Ventures Corp. has entered into binding commitments with respect to a comprehensive construction financing package totalling US$481 million for the development and construction of its 100% owned Tocantinzinho Gold Project (TZ).

The project remains on track to achieve production in 2H24. Securing financing on schedule, despite a volatile market environment, represents a strong statement of support for the management team, as well as the technical and economic merits of the project.

Financing package highlights – US$481 million:

  • US$116 million equity financing via a private placement with strategic investors priced at CAN$0.80 per common share.
    • US$68.8 million investment by La Mancha Investments S.à r.l.
    • US$27.5 million investment by Franco-Nevada Corp.
    • US$20.0 million investment by Eldorado Gold Corp.
  • US$250 million gold stream with Franco-Nevada.
    • Represents one of Franco-Nevada’s largest gold streams on a primary gold mine.
  • US$75 million senior secured term loan from Franco-Nevada.
  • US$40 million in equipment financing with Caterpillar Financial Services Ltd.
  • The gold stream and term loan financings are closed, and the remainder of the financing package is expected to close in 3Q22.

Louis-Pierre Gignac, President & Chief Executive Officer of GMIN, comments:

“We are delighted to welcome two new cornerstone partners in Franco-Nevada and La Mancha who are committed to the longterm success and growth of GMIN. Their commitment, along with Eldorado Gold’s continued support, further validates the management team and the work done to advance the project since its acquisition in 2021.

“Building on our positive feasibility study released earlier this year, this financing package marks the next step in the progression of GMIN and allows us to continue to unlock value at TZ. The imminent development of TZ will deliver value to our growing stakeholder group, including generating attractive job opportunities and economic prosperity in Pará State.”

Paul Brink, President & Chief Executive Officer of Franco-Nevada, comments:

“We are delighted to support GMIN with this construction financing package. Tocantinzinho is an attractive project in a prolific district and located in a good jurisdiction. The GMIN team has a track-record as one of the most capable mine building teams in the industry. The debt and equity investments that accompany our stream investment reflect our confidence in the capabilities of the GMIN team and in the potential of the project.”

Karim Nasr, Managing Partner of La Mancha Capital Advisory LLP, comments:

“The La Mancha Group has a long track record of successful investments in the mining industry, and we look to build further on this track record with La Mancha’s investment in GMIN. We are impressed with the unique skillset of the management team, and with both the quality and potential of TZ. We look forward to being a part of GMIN’s journey towards becoming an intermediate producer through the development of TZ, and as the corporation evaluates future growth opportunities beyond this initial project.”

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