Canadian firm to earn over US$30B from US$3B buyout of two Canadian gold companies in Guyana

Apr 13, 2026 News

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…Guyana gets nothing from US$3B sale

By Renay Sambach

Kaieteur News – The latest move by G Mining Ventures (GMIN) to acquire another fellow Canadian firm that operates in Guyana can see the company earning over US$30 billion based on a combined resource of 7-million ounces, and gold prices remaining above US$4,500 per ounce when production begins.

The 4.64 million ounces Oko West Gold Project located in Region Seven (Cuyuni-Mazaruni) was added to GMIN’s portfolio back in 2024 following a business combination with fellow Canadian firm, Reunion Gold Corp. valued at US$638 million (C$875 million). In a similar move, GMIN last week announced that it entered into a definitive agreement with another Canadian company, G2 Goldfields for approximately US$2.2 billion (C$3 billion).

With the latest acquisition, the two neighbouring properties will be merged into a single mining hub with a combined 7-million-ounce gold resource base, including 2.3 million ounces in measured and indicated resources and inferred resources.

The combined development is expected to produce more than 500,000 ounces of gold annually over its life, with Oko West contributing approximately 350,000 ounces per year and Oko-Ghanie adding an estimated 228,000 ounces annually. This level of output is expected to create a large-scale, low-cost tier-1 gold mining hub in one of the most prospective emerging gold districts in the world.

GMIN’s acquisition of G2 and business combination with Reunion to secure and combine the assets is pegged at US$2.838 billion.

ACQUISITION OF G2

Acquiring G2 will expand GMIN’s footprint in Guyana by 293 km² (square kilometres), creating a combined contiguous land package of over 362 km².

According to GMIN, once in production, the combined Oko project has the potential to rank among the highest producing gold mines globally.

The anticipated Life of Mine (LOM) average gold production of approximately 350,000 ounces of gold annually from GMIN’s Oko West Project and 228,000 ounces of gold annually from G2’s Oko-Ghanie Project into a single project brings the potential to produce over 500,000 ounces of gold annually on a LOM average basis.

The Oko West project proven and probable reserves is at an average grade of 1.89 grams of gold per tonne. The project is expected to produce about 350,000 ounces of gold annually over a 12.3-year mine life. G2’s maiden Preliminary Economic Assessment (PEA) had outlined that the project will entail a combined open-pit and underground operation with a 14-year life of mine.

 

The integration of the deposits is expected to enhance mine sequencing and optimisation opportunities, supporting higher mill feed grades and a more balanced blend of open pit and underground mining over the LOM.

GMIN noted that there is an opportunity to accelerate Oko-Ghanie’s permitting timeline by combining with the fully permitted Oko West Project. The targeted timeline for first gold production at Oko West in the second half of 2027 remains unchanged.

It was also explained that combining the projects also accelerates and simplifies the Oko-Ghanie Project’s permitting timeline with Oko West already being fully permitted. The integration of Oko-Ghanie is expected to streamline permitting execution, deliver a reduced environmental footprint by leveraging shared infrastructure and reduce overall development risk, representing a significant unquantifiable further synergy.

Moreover, GMIN plans to move quickly through technical studies to verify the optimal mine plan, sequencing, and throughput for the combined Oko Project, with an intention to release a technical report in 2027, targeting expanded production by first half of 2029.  GMIN said it does not expect any delays in first production in Guyana by combining the Oko West Project with the Oko-Ghanie Project.

Notably, the terms and conditions of the existing Oko West Mineral Agreement are to be extended to cover the combined project. Also, a reduced-scope Environmental and Social Impact Assessment (ESIA) would be required, potentially in the form of an addendum to the existing Oko West ESIA, along with a corresponding permit amendment.

The agreement with G2 is expected to unlock more than C$1 billion in measurable synergies, driven by reduced capital and operating costs, as well as increased output. According to GMIN, these stem from shared infrastructure, optimised mine sequencing, and streamlined permitting.

In fact, the combined operation would avoid approximately C$850 million in capital expenditure that would otherwise be required to develop a standalone Oko-Ghanie Project. This is largely due to the elimination of the need for a separate mill and tailings facility, along with the integration of key infrastructure. Additionally, operating cost savings of about C$275 million over the LOM are anticipated.

According to the terms of the agreement, G2 shareholders will receive 0.212 GMIN shares for each G2 share, along with shares in a new company, G3 SpinCo, which will hold G2’s remaining properties not included in the acquisition.

G2 shareholders will also receive common shares in a newly created gold explorer called G3 SpinCo, that will hold interests in the Tiger Creek property, Peters Mine property and Property B, being all remaining G2 properties outside of Oko-Ghanie, Amsterdam, Aremu Partnership and Aremu Mine, Property A, and the Ghanie Medium Scale Mining Permit to be acquired by GMIN under the new transaction. The combined company is to be led by GMIN’s management team.

BUSINESS COMBINATION WITH REUNION

In 2002, the Guyana Geology and Mines Commission (GGMC) conducted the Lower Puruni Regional Geochemistry Programme, which covered the Oko West Gold Project area, identifying gold and molybdenum anomalies from stream sediment samples.

In 2018, the local permit holder introduced Reunion Gold Inc. to a number of claims that resulted in a site visit to a mining pit to inspect outcrops and alluvial waste piles. This visit and the interpretation of a favourable local geological context prompted the option of two groups of medium-scale mining permits, one of which was the Oko West Gold Project.

On September 23, 2022, a prospecting licence was issued to Reunion Gold on the Oko West Gold Project and in April 2024, GMIN and Reunion Gold announced plans to enter into a definitive agreement to combine the two companies at a cost of US$638 million.

Under the terms of the agreement, shareholders of GMIN and Reunion receive common shares of a newly formed company, with Reunion shareholders receiving 0.285 GMIN common shares for each share held. In addition, Reunion shareholders gain shares in a newly created gold company (SpinCo/Greenheart Gold) that hold all of Reunion’s assets other than Oko West. The agreement resulted in GMIN and Reunion shareholders own about 57% and 43%, respectively in the combined entity.

CANNOT PREVENT FLIPPING

Despite the multi-billion-dollar transactions, Guyana does not directly benefit from the sale of mining assets between foreign companies.

Kaieteur News had reported that GMIN’s US$638 million combination with Reunion Gold came shortly after the company signed a US$1 million a Mineral Agreement with the Government of Guyana. Back in 2024, Vice President Bharrat Jagdeo was questioned on the move and he stated that ‘flipping’ is not unusual, particularly in the mining industry and it is something the government cannot prevent.

He had said, “I don’t know who is walking away with six-something but…remember we dealt with the issue of flipping…” the vice president added, “I pointed out that this is not unusual in many parts of the world so I have no doubt that a company may be selling a project here…I doubt the figure.”

Jagdeo said too, “I’m saying, I’m not aware of any flipping but flipping is not something you have to consult the government of Guyana on…”

Moreover, he went on to highlight past instances of flipping in the oil and gas sector. In relation to that sector, the vice president underscored that a signing bonus is attached to the exploration licences of US$10 million and US$20 million. “Just to explore you have to pay a signing bonus now so we put in a big signing bonus there, because you can’t prevent people from going for partnerships…even if they flip, the State earns (from the signing bonus) because you can’t prevent that from happening,” he added.

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• Canadian, Cuyuni-Mazaruni, GMIN, Gold Mining, Mining Ventures, Oko-Ghanie

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