G Mining Ventures (TSX:GMIN,OTCQX:GMINF) (GMIN) is acquiring G2 Goldfields (TSXV:GTWO,OTCQX:GUYGF) in an estimated US$2.13 billion all-stock transaction, moving to consolidate two adjacent projects in Guyana to create one of the largest and lowest-cost gold mining centers in the US.
The final agreement, announced on Thursday (April 9), will merge GMIN’s fully approved Oko West project with G2’s Oko-Ghani project.
Under the terms of the plan of arrangement, G2 shareholders will receive 0.212 GMIN ordinary shares for each G2 share held. Upon completion, existing GMIN shareholders will own 80.1 percent of the combined entity, while G2 shareholders will hold the remaining 19.9 percent.
“The combination of GMIN’s Oko West Project and G2’s Oko-Ghani Project fulfills our stated vision of building and operating a large, long-life, Tier-1 asset in Guyana.” Said Louis-Pierre Gignac, CEO of GMIN. “Once constructed, this mine has the potential to rank among the highest producing gold mines globally.”
By combining the adjacent assets, GMIN is expected to save more than US$710 million in capital and operating costs. Consolidating the two projects will also eliminate the need to build a separate mill and tailings facility for Oko-Ghani, saving approximately US$603.5 million in capital expenditures.
Additionally, shared infrastructure and integrated mine sequencing is expected to reduce operating costs at the LOM by approximately US$195.3 million.
The transaction also simplifies the regulatory path for G2’s assets. GMIN noted that integrating Oko-Ghani with the fully approved Oko Waste project is expected to streamline execution, as it will only require a reduced scope environmental and social impact assessment as an addendum to the existing Oko Waste permit.
GMIN confirmed that the targeted timeline for first gold production at Oko West in the second half of 2027 remains unchanged.
As part of the transaction, G2’s remaining exploratory assets outside the immediate Oko footprint will be spun off into a newly created entity, “G3 Spinco”.
G2 shareholders will retain 100 percent ownership of G3, which will be capitalized with US$31.95 million in cash. In addition, G3 will receive a contingent value right (CVR) that could pay up to US$200 million based on future resource growth on the acquired assets.
The deal follows GMIN’s rapid expansion and strong financial position. Last month, the company informed Its proven and probable mineral reserves increased by a massive 221 percent year-on-year, reaching 6.52 million ounces of gold, primarily driven by the completion of the Oko Waste Feasibility Study.
The Guyana expansion will be self-funded by GMIN’s strong balance sheet, boasting US$288 million in cash and an undrawn US$350 million credit facility.
This liquidity is based on strong cash flows from the company’s Tocantinsinho mine in Brazil, which it acquired first full year Commercial production in 2025 will yield 171,871 ounces of gold at strong margins.
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Securities Disclosure: I, Gian Liguid, do not have any direct investment interest in any of the companies mentioned in this article.
