{"id":75832,"date":"2022-07-18T10:00:19","date_gmt":"2022-07-18T10:00:19","guid":{"rendered":"https:\/\/pr.asianetpakistan.com\/?p=95025"},"modified":"2022-07-18T10:00:19","modified_gmt":"2022-07-18T10:00:19","slug":"g-mining-ventures-announces-us481-million-financing-package-for-tocantinzinho-gold-project","status":"publish","type":"post","link":"https:\/\/lebanonnewsgazette.com\/g-mining-ventures-announces-us481-million-financing-package-for-tocantinzinho-gold-project\/","title":{"rendered":"G Mining Ventures Announces US$481 million Financing Package for Tocantinzinho Gold Project"},"content":{"rendered":"
All amounts are in US dollars unless stated otherwise<\/u><\/em><\/p>\n BROSSARD, QC, July 18, 2022 \u2013 G Mining Ventures Corp.<\/strong> (\u201cGMIN<\/strong>\u201d or the \u201cCorporation<\/strong>\u201d) is pleased to announce that the Corporation 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 (\u201cTZ<\/strong>\u201d or the \u201cProject<\/strong>\u201d). 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.<\/p>\n Financing Package Highlights – $481 million<\/strong><\/p>\n Louis-Pierre Gignac, President & Chief Executive Officer of GMIN, commented:<\/strong> \u201cWe are delighted to welcome two new cornerstone partners in Franco-Nevada and La Mancha who are committed to the long-term success and growth of GMIN. Their commitment, along with Eldorado Gold\u2019s continued support, further validates the management team and the work done to advance the Project since its acquisition in 2021. 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 Par\u00e1 State.\u201d <\/em><\/p>\n Paul Brink, President & Chief Executive Officer of Franco-Nevada, commented:<\/strong> “We are delighted to support GMIN with this construction financing package. Tocantinzinho is an attractive project in a prolific district and located in a good jurisdiction. The GMIN team has a track-record as one of the most capable mine building teams in the industry.\u00a0 The debt and equity investments that accompany our stream investment reflect our confidence in the capabilities of the GMIN team and in the potential of the project.\u201d<\/em><\/p>\n Karim Nasr, Managing Partner of La Mancha Capital Advisory LLP, commented:<\/strong> \u201cThe La Mancha Group has a long track record of successful investments in the mining industry, and we look to build further on this track record with La Mancha\u2019s investment in GMIN. We are impressed with the unique skillset of the management team, and with both the quality and potential of TZ. We look forward to being a part of GMIN\u2019s journey towards becoming an intermediate producer through the development of TZ, and as the Corporation evaluates future growth opportunities beyond this initial Project.\u201d <\/em><\/p>\n Overview of Project Financing <\/u><\/strong><\/p>\n As detailed in the Feasibility Study published in Q1-2022, the initial Project capital cost is estimated to be $427 million, which is inclusive of $38 million of contingency (10% before taxes). After taking into consideration $49 million of payable taxes, the total funding required is $476 million. GMIN is eligible for $18 million of recoverable taxes and tax credits, which have not been deducted in calculating development capital required as this will only be received after the commencement of production.<\/p>\n As of June 30, 2022, GMIN has incurred capital expenditures of $21 million, resulting in remaining estimated capital costs of $455 million, or $417 million exclusive of $38 million of contingency. Procurement to date totaling $71 million is tracking on budget and has largely focused on major equipment for the process plant and mining equipment. GMIN is progressing well on its procurement strategy that focuses on maximizing Brazilian sources when sourcing equipment and supplies.<\/p>\n The total financing package of $481 million, combined with $54 million of cash on hand as at June 30, 2022, totals $535 million of available capital, and provides GMIN with committed capital sources in excess of the remaining estimated capital balance. It is estimated that $32 million of the equipment financing provided by Cat Financial will be utilized during the construction period, with $8 million to stay in reserve.<\/p>\n After taking into consideration corporate costs, working capital, and debt service, GMIN estimates cash and budgeted contingency totaling $81 million (18%), as detailed below. <\/strong><\/p>\n Figure<\/u><\/strong> 1 \u2013 Sources and Uses of Funds Summary<\/u><\/strong><\/p>\n <\/a><\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n Financing Package Summary<\/u><\/strong><\/p>\n In connection with the financing package, GMIN and Franco-Nevada have executed final documentation with respect to: (i) a definitive purchase and sale agreement under which Franco-Nevada (Barbados) Corporation will pay GMIN a deposit of $250 million to acquire a percentage of payable gold production from TZ, (ii) the provision by Franco-Nevada, through one of its wholly-owned subsidiaries, of a senior secured term loan in the principal amount of $75 million, and (iii) the purchase by Franco-Nevada, on a private placement basis, of approximately 44.7 million GMIN common shares at a subscription price of C$0.80 per share, for total proceeds of $27.5 million (C$35.8 million).<\/p>\n Concurrently, GMIN, La Mancha, and Eldorado Gold have executed final documentation with respect to the purchase by La Mancha and Eldorado Gold, on a private placement basis, of 111.9 million and 32.5 million, respectively, GMIN common shares at a subscription price of C$0.80 per share, for gross proceeds of $68.8 and $20.0 million (C$89.5 and C$26.0 million), respectively. Equity Private Placement \u2013 Strategic Investors <\/strong><\/p>\n Members of the Gignac Family, along with GMIN directors and officers (collectively \u201cInsiders<\/strong>\u201d) hold 34,722,869 common shares, which will represent 7.8% of GMIN\u2019s common shares outstanding pro-forma the transaction. To further align with the Strategic Investors, the Insiders have agreed to a 24-month restriction on sales or transfers of any GMIN securities. The private placement is subject to the acceptance of the TSX Venture Exchange (\u201cTSXV<\/strong>\u201d) and will be completed in two tranches, with the first tranche closing in July 2022. The second tranche, which will consist of the issuance to La Mancha of approximately 29.0 million GMIN common shares for proceeds of approximately C$23.2 million ($17.8 million), and which will be subject to a majority approval of the disinterested GMIN shareholders pursuant to the policies of the TSXV, is expected to close in Q3-22. At the time of writing, voting support agreements that comprise more than 45% of the disinterested GMIN shareholders have been entered into with the Strategic Investors and Insiders.<\/p>\n Gold Stream \u2013 Franco-Nevada<\/strong><\/p>\n erm Loan \u2013 Franco-Nevada<\/strong><\/p>\n Equipment Financing<\/strong><\/p>\n Tocantinzinho Development Update<\/u><\/strong><\/p>\n Since the most recent project update released on May 26, 2022, GMIN has advanced the following aspects of the Project:<\/p>\n Procurement<\/strong><\/p>\n Power Supply<\/strong><\/p>\n Construction \u2013 Early Works Activities<\/strong><\/p>\n Figure<\/u><\/strong> 2 \u2013 Expansion of Exploration Camp<\/u><\/strong><\/p>\n <\/a><\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n Figure<\/u><\/strong> 3 \u2013 Freight forwarder base in Moraes Almeida<\/u><\/strong><\/p>\n <\/a><\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n Figure<\/u><\/strong> 4 \u2013 Access Road Upgrade<\/u><\/strong><\/p>\n <\/a><\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n Tocantinzinho Benefit to Local Community<\/u><\/strong><\/p>\n Local Employment<\/strong><\/p>\n Community Programs<\/strong><\/p>\n Figure<\/u><\/strong> 5 \u2013 Mr. Severino, Director of Education of Itaituba, with Louis-Pierre Gignac<\/u><\/strong><\/p>\n <\/a><\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n Other Long-term Local Benefits<\/strong><\/p>\n Advisors:<\/u><\/strong><\/p>\n BMO Capital Markets is acting as exclusive financial advisor to GMIN in connection with the La Mancha strategic investment. Stikeman Elliott LLP, Blake, Cassels & Graydon LLP, Grebler Advogados and Mattos Filho Advogados acted as GMIN\u2019s legal advisors. Timetable and Next Steps<\/u><\/strong><\/p>\n With the financing package secured, the Corporation will be focused on the following activities:<\/p>\n Feasibility Study 3D VRIFY Presentation<\/u><\/strong><\/p>\n To view a 3D VRIFY presentation of the Study please click on the following link: Feasibility Study 3D VRIFY Presentation<\/strong><\/a>, or visit the Corporation\u2019s website at www.gminingventures.com<\/a>. Tocantinzinho Financing Package Conference Call Details<\/u><\/strong><\/p>\n GMIN will host a conference call to discuss the financing package.<\/p>\n Date:<\/strong> Monday, July 18, 2022<\/p>\n Time:<\/strong> 10:30 a.m. Eastern Time.<\/p>\n Participants may join the call as follows:<\/strong><\/p>\n Dialing North American Toll Free: +1-888-506-0062<\/p>\n International: 973.528.0011<\/p>\n Access Code: 564993<\/p>\n Webcast URL:<\/strong> https:\/\/www.webcaster4.com\/Webcast\/Page\/2892\/46159<\/a><\/p>\n For those unable to participate, a web-based archive of the conference call will be available for playback through Tuesday, July 18, 2023 at the same Webcast URL above. Also, an audio replay will be available from 1:30 p.m. Eastern Time on Monday, July 18, 2022 through Monday, August 1, 2022. To access the replay, please call 1.877.481.4010 (U.S. & Canada) or 1.919.882.2331 (International) and enter confirmation code 46159 #.<\/p>\n Additional Information<\/u><\/strong><\/p>\n For further information on GMIN, please visit the website at www.gminingventures.com<\/a> or contact:<\/p>\n Jessie Liu-Ernsting<\/strong><\/p>\n Director, Investor Relations and Communications<\/p>\n 647.728.4176<\/p>\n info@gminingventures.com<\/a> About G Mining Ventures Corp.<\/u><\/strong><\/p>\n G Mining Ventures Corp. (TSXV: GMIN) (OTCQX: GMINF) is a mineral exploration company engaged in the acquisition, exploration and development of precious metal projects, to capitalize on the value uplift from successful mine development. GMIN is well-positioned to grow into the next mid-tier precious metals producer by leveraging strong access to capital and proven development expertise. GMIN is currently anchored by its flagship Tocantinzinho Project in mining friendly and prospective Par\u00e1 State, Brazil.<\/p>\n About Franco-Nevada<\/u><\/strong><\/p>\n Franco-Nevada is the leading gold-focused royalty and streaming company with the largest and most diversified portfolio of cash-flow producing assets. Its business model provides investors with gold price and exploration optionality while limiting exposure to cost inflation. Franco-Nevada is debt-free and uses its free cash flow to expand its portfolio and pay dividends. It trades under the symbol FNV on both the Toronto and New York stock exchanges. Franco-Nevada is the gold investment that works. About La Mancha and <\/u><\/strong>La Mancha Fund SCSp<\/u><\/strong><\/p>\n La Mancha is a wholly-owned subsidiary of La Mancha Fund SCSp (the \u201cFund<\/strong>\u201d), a Luxembourg based investment fund advised by La Mancha Capital Advisory LLP that is focused on investments in the precious metals and energy transition space. \u00a0La Mancha\u2019s head office is located at 31-33 Avenue Pasteur L-2311 Luxembourg. La Mancha will file an early warning report in accordance with applicable Canadian securities laws, which will be available under GMIN\u2019s profile on the SEDAR website at www.sedar.com, and may also be obtained by contacting Karim-Michel Nasr as provided for below.<\/p>\n About La Mancha Capital Advisory LLP<\/u><\/strong><\/p>\n La Mancha Capital Advisory LLP advises the Fund on strategic investments made in publicly listed and private exploration, royalty, and mining companies with a global outlook. La Mancha Capital Advisory LLP is a long-term minded investment advisor, with a mandate to support mining companies to achieve sustained growth by providing long-term equity capital as well as operational and board level expertise, to further portfolio company performance and expansion.<\/p>\n La Mancha Capital Advisory LLP is an Appointed Representative of G10 Capital Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 648953).<\/p>\n\n
\n
\n
\n
\n<\/strong><\/p>\n\n
\n
\n
\n
\n<\/strong><\/p>\n\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n
\n<\/u><\/strong><\/p>\n\n
\n<\/u><\/strong><\/p>\n
\n<\/u><\/strong><\/p>\n
\n<\/u><\/strong><\/p>\n