(Kitco News) - G Mining Ventures (TSXV: GMIN) announced Monday that the company has entered into binding commitments with respect to a comprehensive construction financing package totaling $481 million for the development and construction of its 100% owned Tocantinzinho gold project in Brazil.
The company said that the financing package consists of $116 million equity financing via a private placement with strategic investors; 68.8 million investment by La Mancha Investments; $27.5 million investment by Franco-Nevada; $20.0 million investment by Eldorado Gold; $250 million gold stream with Franco-Nevada; $75 million senior secured term loan from Franco-Nevada; $40 million in equipment financing with Caterpillar Financial Services.
Tocantinzinho is a permitted, construction ready, open-pit gold deposit containing 2.0 million ounces of reserves located in Para State, Brazil. Eldorado Gold acquired Tocantinzinho in 2010 through the $120 million acquisition of Brazauro Resources and invested over $90 million into the project prior to GMIN’s $115 million acquisition in Q4 2021.
Importantly, G Mining noted that all the key permits required for the start of construction have been received, including the installation license in 2017, with the mining concession issued in 2018.
According to the company’s statement, the project remains on track to achieve production in the second half of 2024.
“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,” the company said in its press-release.
G Mining Ventures is a mineral exploration company engaged in the acquisition, exploration and development of precious metal projects. GMIN is currently anchored by its flagship Tocantinzinho gold project in mining friendly and prospective Pará State, Brazil.
