G Mining Ventures Spends $638M To Buy Reunion Gold Guyana Project
Montreal-based G Mining Ventures (OTCQX:GMINF) is acquiring Reunion Gold‘s (OTCQX:RGDFF) Oko West gold project in Guyana in an all-share deal for $638 million. What Happened: This acquisition will strengthen the company's foothold in South America and solidify its position as an intermediate gold producer.
“We are well-positioned to accelerate value creation at Oko West, leveraging our unique expertise in building and operating mines on schedule and budget in the Guiana Shield. 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," G Mining CEO Louis-Pierre Gignac said in a statement.
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Why It Matters: The Oko West gold project, located 60 miles southwest of Guyana’s capital, Georgetown, has emerged as a major gold discovery in recent years.
The site boasts an estimated resource of 64.6 million indicated tons grading 2.05 grams of gold per ton and 19.2 million inferred tons grading 2.59 grams of gold per ton.
With its experienced management team, G Mining should bring technical expertise and financial resources to advance production, given its track record in the Guiana Shield region.
The company was founded by the Gignac family, whose experience includes building Cambior‘s first South American gold mine in Guyana in the early 1990s.
Additionally, G Mining and Reunion Gold aim to spin off Reunion’s other assets into a new company. SpinCo, a new exploration company funded with $15 million from G Mining, will focus on acquiring and exploring gold properties outside the immediate 12-mile area of interest surrounding Oko West. It will also target properties in neighboring Suriname, a country already boasting established gold mines like IAMGOLD’s Rosebel and the aforementioned Merian.
This agreement provides continued exploration opportunities for both companies. G Mining gains a foothold in a broader exploration area, while Reunion Gold shareholders retain exposure to this potential through their ownership in SpinCo.
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Source: https://markets.businessinsider.com/