Canadian mineral exploration company G Mining Ventures (GMIN) has secured a $481m financing package for the development and construction of its Tocantinzinho gold project in Pará State, Brazil.
The comprehensive construction financing package includes $116m in equity funding via a private placement, priced at C$0.80 a share, with strategic investors, as well as $40m in equipment funding from Caterpillar Financial Services.
It also includes a $20m investment from Eldorado Gold and $68.8m from La Mancha Investments.
La Mancha and Eldorado Gold will own 19.8% and 17.7%, respectively, of GMIN’s common shares outstanding.
Furthermore, La Mancha will subscribe for a further 29,004,265 common shares to hold 25% upon approval of the disinterested GMIN shareholders.
Gold streaming company Franco-Nevada has committed to a $352.5m full financing solution comprising stream, debt, and equity, with the Canadian firm for the gold project.
This includes a $27.5m investment, a $250m gold stream, and a $75m senior secured term loan.
Upon completion, Franco-Nevada will own 9.9% of G Mining’s outstanding shares.
Franco-Nevada president and CEO Paul Brink said: “Tocantinzinho is an attractive project in a prolific district and located in a good jurisdiction.”
Planned to be commissioned in the second half of 2024, the Tocantinzinho open-pit gold deposit is estimated to hold two million ounces of reserves.
GMIN president and CEO Louis-Pierre Gignac said: “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.”