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Canadian company eyes big boost in status with acquisition of gold project in Guyana
The operations at the Oko West project
Kaieteur News – Canadian firm-G Mining Ventures Corporation (GMIN) has eyes on becoming a mid-tier gold producer now that it has acquired the Oko West gold project which is located in Region Seven (Cuyuni-Mazaruni).
Earlier this year, Reunion Gold Corporation, also Canadian, announced that GMIN will be taking over its Guyana’s Oko West project, as a result of an all-share deal valued at C$875 million (US$638 million).
In a statement on July 15, both companies announced that the deal was finalized by way of a court approved plan of arrangement under the Canada Business Corporations Act. “The Arrangement was overwhelmingly approved by GMIN shareholders as well as Reunion Gold security-holders at their respective annual general and special meetings held on July 9, 2024, and was subsequently approved by the Ontario Superior Court of Justice (Commercial List) on July 11, 2024,” the release said.
Louis-Pierre Gignac, President, Chief Executive Officer (CEO) and Director of GMIN stated that the Oko West project in Guyana will catapult the company as a leading intermediate gold producer.
According to the statement, Gignac stated: “Oko West will play an important role in realizing our vision of becoming a leading intermediate gold producer, with its significant resource base, excellent expansion potential and location in a mining-friendly jurisdiction. With the close of the Oko West acquisition, I am excited to undertake maximising value of this generational asset.
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. I would like to take this opportunity to welcome Reunion Gold shareholders to the GMIN family, and I look forward to continuing to create value for our existing and new shareholders.”
On April 18, Reunion had announced the signing of an agreement with government and the Guyana Geology and Mines Commission (GGMC), which paves the way for the exploration and development of the Oko West gold project located in Region Seven (Cuyuni-Mazaruni), Guyana. Under the terms of the Mineral Agreement, Reunion Gold is granted stable fiscal and operational conditions throughout the project’s lifespan.
Reunion has firmly set its eyes on reaching gold production at its Oko West Gold Project by 2027. The company has an estimated 4.2 million ounces of gold. In February 2024, Reunion announced an updated Mineral Resource Estimate (MRE) containing a total of 4.3 M oz. of gold in Indicated Resources grading 2.05 g/t and 1.6 M oz. of gold in Inferred Resources grading 2.59 g/t. The February 2024 MRE includes an underground Resource containing 1.1 M oz. of gold at a grade of 3.12 g/t Au in the Inferred category.
For his part, Rick Howes, President, CEO and Director of Reunion Gold, stated, “We are pleased with the completion of the business combination and look forward to following the advancement of the Oko West project to production. I would like to recognize the Reunion Gold team’s effort and shareholders’ continued support allowing us to rapidly advance Oko West 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.”
The Canadian companies entered into a definitive agreement to combine the two companies, with hopes of setting the stage for the creation of a leading intermediate gold producer, particularly in the Guiana Shield region.
Under the agreement, a new entity “New GMIN” was created to hold and manage the two companies. Notably, the number of common shares issued by New GMIN to GMIN and Reunion shareholders will be equivalent to the combined company undergoing a 4-to-1 share consolidation. In addition, Reunion shareholders will receive common shares in a newly created gold explorer (“Greenheart Gold” or “Spinco”) that will hold all of Reunion’s assets other than Oko West. Notably GMIN has agreed to fund SpinCo with C$15 million.
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