La Mancha completes merger of G Mining Ventures and Reunion Gold

This merger brings the Tocantinzinho project in Brazil and the Oko West project in Guyana under common management, creating a leading multi-asset, regionally-focused gold producer. As part of the broader transaction, the Fund has successfully completed its US$25 million investment to support the merger and will therefore hold an approximately 18% stake in the combined entity.

The successful on-time and on-budget construction of Tocantinzinho, alongside the combination with the Oko West project, represents a transformative step in delivering La Mancha’s strategic vision to create a premier gold producer in Latin America. This merger provides the latest proof points of the successful realisation of La Mancha’s investment thesis, underscoring its long-term commitment to upporting the Fund’s portfolio companies during their key formative stages through the timely provision of capital and expertise to promote significant value and growth opportunities.

Vincent Benoit, Managing Partner and Co-Chief Investment Officer of La Mancha, commented: “La Mancha has been impressed by G Mining's progress on the Tocantinzinho project since our initial investment in July 2022. The project achieved its first gold pour on 9 July 2024, on time and budget. Oko West is a multi-million-ounce gold resource with significant further exploration potential, poised to become one of the largest and lowest-cost mines in the region. We have great confidence in the combined G Mining/Reunion management team to replicate their success at Tocantinzinho, and expedite the development of Oko West, swiftly advancing the company toward intermediate status with production exceeding 500 000 oz annually. La Mancha is proud to support this transaction, which unites these two high-quality assets, and we look forward to playing a key role in the next stages of the creation of a premier intermediate gold producer in the Americas.”

Read the article online at: https://www.globalminingreview.com/mining/17072024/la-mancha-completes-merger-of-g-mining-ventures-and-reunion-gold/