G Mining Ventures Corp (TSX-V:GMIN, OTCQX:GMINF) and Reunion Gold Corporation (TSX-V:RGD, OTCQB:RGDFF) have completed their merger to form a leading gold producer.
The move integrates Reunion Gold's Oko West project with G Mining’s existing portfolio of assets in Brazil, including its flagship Tocantinzinho gold project.
Louis-Pierre Gignac, CEO, of GMIN, told shareholders that Oko West will play an “important role” in GMIN’s vision to become a leading intermediate gold producer, citing the project’s exisiting resource base, expansion potential and location in a mining-friendly jurisdiction.
“With the close of the Oko West acquisition, I am excited to undertake maximizing value of this generational asset,” Gignac said.
“Our team is uniquely positioned to accelerate value creation at Oko West, leveraging our deep Guiana Shield experience, expertise in project execution, and the tangible synergy from the anticipated near-term free cash flow, established system, team and equipment at Tocantinzinho.”
Rick Howes, CEO of Reunion Gold, echoed these sentiments, emphasizing the rapid progress of the Oko West project from discovery to development in just over three years. “We are confident that Oko West will provide a key contribution to GMIN's vision of becoming a leading intermediate gold producer and will benefit Guyana and all stakeholders."
Under the terms of the arrangement, former GMIN shareholders receive 0.25 shares of the newly incorporated New GMIN for each GMIN share held, while former Reunion Gold shareholders receive 0.07125 New GMIN shares and 0.05 shares of Greenheart Gold Inc. for each Reunion Gold share.
Greenheart Gold, a newly formed entity, will focus on gold exploration, with GMIN funding C$15 million transferred from Reunion Gold.
With the completion of the arrangement, Pierre Chenard and Réjean Gourde have joined the board of New GMIN as nominees of Reunion Gold, following the departure of Carlos Vilhena.
New GMIN shares are expected to commence trading on the Toronto Stock Exchange under the symbol ‘GMIN’ around July 17, 2024.