G Mining Ventures Corp (TSX-V:GMIN, OTCQX:GMINF) said it will buydown 1% of the 2.5% net smelter return royalty (NSR) on its Tocantinzinho gold project in Brazil for US$3.5 million in cash.
The company will pay, as part of a 2003 agreement, the original royalty holders and be left with a 1.5% NSR on the asset.
"The second buydown of 1.0% of the NSR for US$3.5 million is another highly accretive transaction for GMIN shareholders, based on economics in our February 2022 updated Feasibility Study and detailed engineering work up to 37% completed to date," said Louis-Pierre Gignac, CEO of G Mining in a statement.
"The updated feasibility study from February 2022 incorporated many of inflationary pressures seen in the industry, while still demonstrating very positive results of NPV5% of $622 million and IRR of 24% using a $1,600 per ounce gold price."
READ: G Mining Ventures to proceed with construction of flagship Tocantinzinho Gold project in Brazil
He added: "We are very pleased to hit this planned milestone toward commercial production at TZ in the second half of 2024, which will be one of the largest primary gold mines in Brazil."
The company noted that having made a positive construction decision, it will now focus on:
- Finalization and results of 10,000-meter exploration and drilling program in Q4 2022
- Completion of detailed engineering through H1 2023
- Issuance of inaugural ESG report in 2023
- Expected first gold production in H2 2024 with the first year of full production in 2025
It also listed the key investor conferences it will be attending this Fall:
- OTC Metals & Mining Conference, Virtual (October 18-20)
- Swiss Mining Institute Conference, Virtual (November 8-10)
- Precious Metals Summit, Zurich (November 14-15)
- Deutsche Goldmesse, Frankfurt (November 18-19)
- Mines and Money, London (November 29-December 1)
G Mining Ventures is focused on the exploration and development of precious metal projects, to capitalize on the value uplift from successful mine development.
Contact the writer at giles@proactiveinvestors.com