G Mining Ventures Acquiring G2 Goldfields in All-Shares Transaction Valued at $3.0 Billion

G Mining Ventures (GMIN.TO) Thursday said it is acquiring G2 Goldfields (GTWO.TO) in an all-shares transaction valued at $3.0 billion. The transaction will consolidate two adjacent gold projects in Guyana: G2's Oko-Ghanie Project and G Mining's fully permitted and fully financed Oko West Project.The exchange ratio implies an offer price of $10.84 per G2 share based on the closing price of G Mining shares on the Toronto Stock Exchange as of April 8. G2 shareholders will receive 0.212 G Mining shares per G2 share held. G2 shareholders will also receive common shares in a newly created gold explorer (G3 SpinCo) that will hold interests in the Tiger Creek property, Peters Mine property and Property B.G3 SpinCo will also be funded with $45 million of cash, a statement said.When the transaction is completed in the second quarter of this year, G Mining and G2 shareholders will own 80.1% and 19.9% of G Mining, respectively, and G2 shareholders will also own 100% of G3 SpinCo.The transaction combines anticipated life of mine average gold production of 50 koz from G Mining's Oko West Project and 228 koz from G2's Oko-Ghanie Project into one project with the potential to produce over 500 koz on a LOM average basis. Oko-Ghanie's permitting timeline may also be accelerated by combining with the fully permitted Oko West Project and the targeted timeline for first gold production at Oko West in the second half of 2027 remains unchanged, G Mining said."Combining GMIN's Oko West Project and G2's Oko-Ghanie Project delivers on our stated vision to build and operate a large, long-life, Tier-1 asset in Guyana. These assets are highly synergistic, and we are well-positioned to accelerate value creation by leveraging our unique expertise in building and operating mines on schedule and on budget in the Guiana Shield, utilizing our deep knowledge of and network in the region to advancing permitting, and deploying our capital to build the mine. Once built, this mine has the potential to rank among the highest producing gold mines globally," said G Mining chief executive Louis-Pierre Gignac.G Mining shares closed down $0.14, to $51.11 on Wednesday on the Toronto Stock Exchange, while G2 Goldfields closed up $0.31, to $6.03.

-- G Mining Ventures (GMIN.TO) Thursday said it is acquiring G2 Goldfields (GTWO.TO) in an all-shares transaction valued at $3.0 billion. The transaction will consolidate two adjacent gold projects in Guyana: G2's Oko-Ghanie Project and G Mining's fully permitted and fully financed Oko West Project.

The exchange ratio implies an offer price of $10.84 per G2 share based on the closing price of G Mining shares on the Toronto Stock Exchange as of April 8. G2 shareholders will receive 0.212 G Mining shares per G2 share held. G2 shareholders will also receive common shares in a newly created gold explorer (G3 SpinCo) that will hold interests in the Tiger Creek property, Peters Mine property and Property B.

G3 SpinCo will also be funded with $45 million of cash, a statement said.

When the transaction is completed in the second quarter of this year, G Mining and G2 shareholders will own 80.1% and 19.9% of G Mining, respectively, and G2 shareholders will also own 100% of G3 SpinCo.

The transaction combines anticipated life of mine average gold production of 50 koz from G Mining's Oko West Project and 228 koz from G2's Oko-Ghanie Project into one project with the potential to produce over 500 koz on a LOM average basis. Oko-Ghanie's permitting timeline may also be accelerated by combining with the fully permitted Oko West Project and the targeted timeline for first gold production at Oko West in the second half of 2027 remains unchanged, G Mining said.

"Combining GMIN's Oko West Project and G2's Oko-Ghanie Project delivers on our stated vision to build and operate a large, long-life, Tier-1 asset in Guyana. These assets are highly synergistic, and we are well-positioned to accelerate value creation by leveraging our unique expertise in building and operating mines on schedule and on budget in the Guiana Shield, utilizing our deep knowledge of and network in the region to advancing permitting, and deploying our capital to build the mine. Once built, this mine has the potential to rank among the highest producing gold mines globally," said G Mining chief executive Louis-Pierre Gignac.

G Mining shares closed down $0.14, to $51.11 on Wednesday on the Toronto Stock Exchange, while G2 Goldfields closed up $0.31, to $6.03.