G Mining announces acquisition of Oko West
Transaction Highlights
Sets the stage for the creation of an Americas focused leading intermediate gold producer
Enhanced multi-asset portfolio with the addition of Oko West, one of the most significant gold discoveries in the Guiana Shield
Best-in class management team, ideally positioned to unlock value of Oko West through in-house execution
Experienced leadership team with impressive track-record of executing projects in the Guiana Shield region
De-risked growth profile to accelerate development of Oko West through anticipated cash flow and funding
Strong balance sheet and anticipated cash flow generation from TZ to fund development of Oko West and minimize additional equity dilution
Supportive shareholder base with shared vision for growth and value creation
$50M concurrent investment from La Mancha and Franco-Nevada, with further commitment from La Mancha to purchase up to an additional $10 million of GMIN shares in the open market
Compelling re-rate potential driven by multiple near-term catalysts and enhanced capital markets profile
Underpinned by history of successful re-rating on strong execution and combined entity with greater scale, investor appearl, and liquidity
Creates a strong Americas focused platform positioned for further growth
Ideally positioned to spearhead further regional consolidation leveraging strong regional platform
GMIN LEADERSHIP DISCUSSES THE OKO ACQUISITION
Today, we are thrilled to announce the merger of G Mining Ventures and Reunion Gold. This marks a key milestone in GMIN's journey, and sets the stage for the creation of a new leading intermediate gold producer in the Americas.
The transaction has robust strategic merits. It combines Reunion’s high-potential Oko West project with GMIN’s attractive TZ project and unique financial and operational capabilities, creating significant value for both sets of shareholders.
Louis-Pierre Gignac, President and CEO of GMIN
“Oko West has all the key attributes GMIN is looking for in its next leg of growth. We are well-positioned to accelerate value creation at Oko West leveraging our unique expertise in building and operating mines on schedule and on budget in the Guiana Shield, deep knowledge of and network in the region, and over US$480M anticipated near-term free cash flow from Tocantinzinho[i]. The acquisition of Oko West is the second step towards our vision of becoming a leading intermediate gold producer, building on the team’s success at Tocantinzinho. We look forward to continuing to advance our “Buy. Build. Operate.” Strategy to create and unlock further value for GMIN shareholders.”
Rick Howes, CEO, President and Director of RGD
“We are very pleased to announce this Transaction today, which we believe is a testament to the outstanding work our team has done rapidly discovering and advancing Oko West over the last few years. We believe that this Transaction not only delivers our shareholders an attractive up-front premium, but also the ability to participate with significant ongoing ownership in the combined company, having the opportunity to participate in an expected future re-rating as Oko West is advanced towards production. The Transaction significantly de-risks the advancement of Oko West given the financial strength, free cash flow, and development capabilities that GMIN brings to the table. Importantly, we believe this is a great outcome for the country of Guyana, with Oko West being taken forward by a company that will be a great steward of the asset for the benefit of the country and its communities.”
[i] Total after-tax free cash flow for years 1-4 per Feasibility Study dated February 09, 2022 (filed under GMIN’s profile on Sedar, entitled "Feasibility Study – NI 43-101 Technical Report, Tocantinzinho Gold Project”), using US$1,600/oz gold price.
https://www.reuniongold.com/oko-west-project
