The open-pit project in Brazil’s Pará State has been financed for construction and is on track to begin production in the second half of 2024
G Mining Ventures (GMIN) has secured a $481m financing package for its Tocantinzinho gold project (TZ gold project) in Brazil from Franco-Nevada, La Mancha Investments, Eldorado Gold, and Caterpillar Financial Services.
The company said that the open-pit project has been financed for construction and continues to be on track to begin production in the second half of 2024.
Franco-Nevada is leading the package by contributing around $353m in the form of stream, debt, and equity.
The gold-focused royalty and streaming company has acquired a gold stream related to the production from the Tocantinzinho gold project for $250m. It will also provide a secured term loan of $75m to G Mining Ventures and subscribe to $27.5m worth of shares of the latter.
Franco-Nevada president and CEO Paul Brink said: “Tocantinzinho is an attractive project in a prolific district and located in a good jurisdiction.
“The G Mining Ventures team has a track-record as one of the most capable mine building teams in the industry. As a stream financing partner we seek, through our financing and our involvement in projects, to help mine developers raise their full financial package on attractive terms.”
La Mancha Investments and Eldorado Gold have agreed to provide equity financing of $68.8m and $20m, respectively, in G Mining Ventures.
Caterpillar Financial Services, on the other hand, will provide equipment financing of $40m for the Tocantinzinho gold project.
According to G Mining Ventures, the gold stream and term loan financings have been closed, and the rest of the financing package is anticipated to close in Q3 2022.
G Mining Ventures president and CEO Louis-Pierre Gignac said: “Building on our positive Feasibility Study released earlier this year, this financing package marks the next step in the progression of GMIN and allows us to continue to unlock value at TZ.
“The imminent development of TZ will deliver value to our growing stakeholder group, including generating attractive job opportunities and economic prosperity in Pará State.”
G Mining Ventures acquired the construction-ready Tocantinzinho gold project in October 2021 from Eldorado Gold for $115m.