G Mining Ventures Sees Franco-Nevada Take 9.9% Stake As Part Of $481 Million Financing Package

G Mining Ventures (TSXV: GMIN) has evidently attracted the eyes of major producers. The firm this morning revealed that it has entered into binding commitments with Franco-Nevada (TSX: FNV), Eldorado Gold (TSX: ELD), and two separate funds for a financing package worth $481 million for its Tocantinzinho Gold Project.

The finance package is set to take the form of several different forms of financings, including:

  • $250 million via a gold stream with Franco-Nevada
  • $116 million via a financing with strategic investors, including Eldorado Gold, Franco-Nevada, and La Mancha Investments
  • $75 million via a senior secured term loan with Franco-Nevada
  • $40 million via an equipment financing with Cat Financial

The financing package on a combined basis is expected to be enough funding to enable the company to get over the finish line with putting the project into production. Total costs to get to the finish line are estimated at $476 million, including taxes, of which $455 million is remaining. Combined with $54 million in current cash on hand, the company now expects to have the funds required to put the Tocantinzinho Gold project into production.

The gold stream will see Franco-Nevada purchase 12.5% of the gold production from the mine for the first 300,000 ounces, after which the figure drops to 7.5%, with gold to be sold at 20% of the spot price of gold.

The equity financing meanwhile will see La Mancha acquire 111.9 million common shares, Franco-Nevada acquire 44.7 million common shares, and Eldorado Gold acquire 32.5 million common shares, with shares to be sold at $0.80 per each. On a post-transaction basis, once shareholder approval is granted, La Mancha will own 25.0% of the firm, while Franco-Nevada will own 9.9% and Eldorado Gold will hold 17.7%.

Production at Tocantinzinho is expected to begin in the second half of 2024.

G Mining Ventures last traded at $0.65 on the TSX Venture.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

First Quantum Sees Cobre Panama Mine Suspend Operations

As we reported earlier this week, First Quantum (TSX: FM) has officially halted processing operations...

Thursday, February 23, 2023, 08:10:01 AM

The Abitibi Greenstone Belt: One of the World’s Richest Gold Regions

For investors who like to participate in the mining sector, and junior mining in particular,...

Saturday, July 25, 2020, 08:30:00 AM

Franco-Nevada Acquires Gold, Platinum Stream From Sibanye-Stillwater

Franco-Nevada (TSX: FNV) has acquired a new precious metals stream following a transaction with Sibanye-Stillwater....

Thursday, December 19, 2024, 08:52:38 AM

G Mining: 4.7M Tons of Gold per Year in New Brazilian Operation

In this interview, Louis-Pierre Gignac, CEO of G Mining Ventures Corp (TSX: GMIN) (OTCQX: GMINF),...

Monday, July 15, 2024, 03:10:00 PM

Eldorado Gold To Repurchase Up To 1.4 Million Shares

Eldorado Gold (TSX: ELD) is the latest gold producer to attempt to give its share...

Friday, December 24, 2021, 08:42:39 AM