G Mining Ventures (TSX: GMIN) has reached a deal to acquire G2 Goldfields (TSX: GTWO), a move designed to stitch together two neighboring projects in Guyana and create what the companies describe as a tier-one gold mining hub.
The transaction, valued at approximately $3.0 billion, effectively consolidates G Mining’s Oko West project with G2’s Oko-Ghanie assets. By merging these adjacent properties, the combined entity expects to have an asset that is capable of producing over 500,000 ounces of gold annually over the life of the mine, positioning it as one of the largest and lowest-cost operations in the Americas.
That potential production figure comes from the estimated average production of G Mining’s Oko West project of 350,000 ounces annually, combined with Oko-Ghanie’s forecasted production of 228,000 ounces annually. The two parties have said that they plan to move quickly through technical studies to verify an optimal mine plan post-merger. Expanded production is targeted for H1 2029, following the release of a technical report next year.
Investors are looking at a deal rich in synergies. The companies estimate the merger will unlock more than $1 billion in value through shared infrastructure, optimized mine sequencing, and a more streamlined permitting process. Because Oko West is already fully permitted, the tie-up is expected to significantly accelerate the development timeline for G2’s side of the fence. Synergies are expected to include $850 million in foregone capital costs, and operating cost savings in excess of $275 million.
Under the terms of the agreement, G2 shareholders will receive 0.212 G Mining shares for each share held. The offer implies a value of C$10.84 per G2 share, representing a 72% premium to the company’s recent closing price. G2 shareholders are expected to hold 19.9% of the resulting company.
As part of the deal, G2 shareholders will also get a stake in G3 SpinCo, a newly formed exploration company that will be seeded with C$45 million in cash to hunt for the next big discovery. The spinout is expected to take ownership of G2’s Tiger Creek, Peters Mine, and Property B properties. Additionally, a contingent value right (CVR) could provide up to US$200 million in further payments if certain resource milestones are met.
G Mining is coming into the deal from a position of relative strength. The company is currently seeing robust free cash flow from its Tocantinzinho mine in Brazil and maintains a cash pile of roughly US$288 million. This liquidity, paired with a massive undrawn credit facility, provides the funding needed to integrate the Guyana assets.
Management for the combined group will be led by the existing G Mining team, which has a track record of taking projects from the drawing board to production. By folding G2’s high-grade resources into G Mining’s operational machine, the hope is to create a district-scale powerhouse in a region that is increasingly becoming a focal point for global gold exploration.
The transaction is expected to close in the second quarter of 2026, pending the usual approvals from shareholders and regulators. A break fee of $121 million is in play.
G Mining Ventures last traded at $51.11 on the TSX.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
