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G Mining Ventures closes US$116M funding package to fund construction of Tocantinzinho gold project in Brazil

Last updated: 15:05 07 Sep 2022 EDT, First published: 09:46 07 Sep 2022 EDT

gold bars on US dollars
In the second tranche, G Mining issued just over 29 million shares to La Mancha Investments S.à r.l, which is focused on investments in the precious and energy transition metals space

G Mining Ventures Corp (TSX-V:GMIN, OTCQX:GMINF) announced that it has closed a US$116 million financing package to support development and construction at its Tocantinzinho gold project in Brazil.

Under the first and second tranche, Quebec-based G Mining issued an aggregate of 189,066,765 shares at C$0.80 per share for gross proceeds of US$116.3 million (C$151.3 million).

In the second tranche, G Mining issued just over 29 million shares at a price of C$0.80 per share to La Mancha Investments S.à r.l. for gross proceeds of US$17.8 million (C$23.2 million).

READ: G Mining Ventures delivers new robust feasibility study for its Tocantinzinho gold project in Brazil

La Mancha is a wholly owned subsidiary of La Mancha Fund SCSp, a Luxembourg-based investment fund advised by La Mancha Capital Advisory LLP that is focused on investments in the precious and energy transition metals space.

La Mancha now holds 111.9 million shares of G Mining, which represent approximately 25% of the firm’s outstanding shares. The holdings of Eldorado Gold Corporation and Franco-Nevada Corporation (TSX:FNV) now total 17.7% and 9.9%, respectively.

Members of the Gignac family, along with G Mining directors and officers, are collectively the fourth largest shareholder holding 7.8% of G Mining’s outstanding common shares.

In connection with the placement, G Mining and La Mancha entered into an investor rights agreement granting La Mancha certain director nomination, anti-dilution, and registration rights. La Mancha has partially exercised its right to nominate two directors to the board of G Mining by nominating Karim-Michel Nasr, who has been appointed to the board.

New board member

Nasr is managing partner and co-chief investment officer of La Mancha Capital Advisory LLP. He has over 25 years of experience in corporate finance and investments, especially in the technology, media, and telecom sector.

A second nominee will follow at a later date, G Mining told investors.

"We are pleased to welcome Karim to the G Mining team,” Louis-Pierre Gignac, the firm’s CEO told investors in a statement.

“Karim's experience in growing companies into multi-billion corporations will be invaluable in our growth story into the next intermediate gold producer, starting with our fully financed Tocantinzinho project. We look forward to commencing full construction activities at Tocantinzinho, as the early works program continues to progress according to plan."

Pathway to production

Now that the the project financing has closed, G Mining said it will be focused on making a positive construction decision by the third quarter of 2022; finalization and results of 10,000-meter exploration and drilling program in 4Q 2022; completion of detailed engineering through the first half of 2023, and issuing an inaugural ESG report in 2023.

The firm is expecting first gold production in the second half of 2024 with the first year of full production in 2025.

Shares of G Mining gained 1.3% in afternoon trading at C$0.77 in Toronto.

--Updates with share price movement--

Contact Angela at angela@proactiveinvestors.com

Follow her on Twitter @AHarmantas

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on 10/24/2022