BROSSARD, QC, Nov. 6, 2024
/PRNewswire/ - G Mining Ventures Corp. ("GMIN" or the
"Corporation") (TSX: GMIN) (OTCQX: GMINF) is pleased to
announce that Franco-Nevada Corporation ("Franco-Nevada") has agreed to exercise by no
later than December 4, 2024, the
11,500,000 common share purchase warrants ("Warrants")
issued to them in connection with the Corporation's Tocantinzinho
("TZ") project financing package announced in 2022 (see
press releases dated July 18, 2022
and July 22, 2022). Pursuant to
the proposed exercise, the Corporation will issue 2,875,000 common
shares to Franco-Nevada for aggregate gross proceeds of
$21.85 million.
Each Warrant entitles Franco-Nevada to acquire 0.25 of a common
share of GMIN at an exercise price of $1.90 per 0.25 of a share, equivalent to
$7.60 per whole share, on or before
the expiry date of July 21, 2027.
Under the terms of the Warrants, the Corporation is permitted to
accelerate the expiry date if its shares have traded on the Toronto
Stock Exchange at a volume-weighted average price of greater than
$12.00 for a period of 10 consecutive
trading days (the "Acceleration Event"). The Acceleration
Event has been realized as of October 31,
2024, and, as a result, the Corporation has elected to
accelerate the expiry date to December 4,
2024.
"We are pleased to announce this warrant acceleration and
exercise, a testament to GMIN's commitment to delivering
shareholder value, underpinned by our successful execution of the
Tocantinzinho mine construction and strict capital discipline,"
stated Louis-Pierre Gignac,
President & Chief Executive Officer of GMIN. "We
deeply appreciate Franco-Nevada's steadfast support and confidence
in our vision. Their partnership was instrumental in achieving the
milestone of TZ's first gold pour and reaching commercial
production in 2024, on schedule and within budget."
Franco-Nevada invested
US$352.2 million in development
capital for GMIN's TZ project in Brazil. This investment included a
US$27.5 million equity investment, a
US$250 million gold stream and a
US$75 million senior secured term
loan. The equity portion of the investment was made at $3.20 per share, representing a 23% premium to
the closing price on the day before the deal announcement
($2.60 per share). The $12.00 per share required to trigger the
Acceleration Event represents a 275% premium to the $3.20 per share equity investment and
a 362% premium to the closing price on the day before the deal
announcement.
Upon exercise of these Warrants, GMIN will have eliminated all
warrant instruments, marking a significant milestone in the
Corporation's capital structure and growth trajectory.
About G Mining Ventures Corp.
G Mining Ventures Corp. (TSX: GMIN) (OTCQX: GMINF) is a mining
company engaged in acquiring, exploring and developing precious
metal projects to capitalize on the value uplift from successful
mine development. GMIN is well-positioned to grow into the next
mid-tier precious metals producer by leveraging strong access to
capital and proven development expertise. GMIN is currently
anchored by the Tocantinzinho Gold Mine in Brazil and the Oko West Project
("Oko West") in Guyana, both mining-friendly and prospective
jurisdictions.
Additional Information
For further information on GMIN, please visit the website at
www.gmin.gold or contact:
Jessie
Liu-Ernsting
Vice President, Investor Relations and
Communications
647.728.4176
ir@gmin.gold
Cautionary Statement on Forward-Looking Information
All statements, other than statements of historical fact,
contained in this press release constitute "forward-looking
information" and "forward-looking statements" within the meaning of
certain securities laws and are based on expectations and
projections as of the date of this press release. Forward-looking
statements contained in this press release include, without
limitation, those related to (i) the exercise of the Warrants by
Franco-Nevada prior to their expiry and (ii) more generally, the
quoted comments of GMIN's President & Chief Executive Officer
as well as the above section entitled "About G Mining Ventures
Corp.".
Forward-looking statements are based on expectations,
estimates and projections as of the time of this press release.
Forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by the
Corporation as of the time of such statements, are inherently
subject to significant business, economic and competitive
uncertainties and contingencies. These estimates and assumptions
may prove to be incorrect. Such assumptions include,
without limitation, those underlying the quoted comments of
GMIN's President & Chief Executive Officer and the items listed
in the above section entitled "About G Mining Ventures
Corp.".
Many of these uncertainties and contingencies can directly or
indirectly cause actual results to differ materially from those
expressed or implied in any forward-looking statements. There can
be no assurance that, notably but without limitation, (i)
Franco-Nevada will exercise the Warrants prior to their expiry,
(ii) GMIN will achieve its stated objectives for TZ and
Oko West, or (ii) GMIN will use TZ
and Oko West to grow GMIN into the
next mid-tier precious metals producer, as future events could
differ materially from what is currently anticipated by the
Corporation. In addition, there can be no assurance that
Brazil and/or Guyana will remain mining-friendly and
prospective jurisdictions.
By their very nature, forward-looking statements involve
inherent risks and uncertainties, both general and specific, and
risks exist that estimates, forecasts, projections and other
forward-looking statements will not be achieved or that assumptions
do not reflect future experience. Forward-looking statements are
provided for the purpose of providing information about
management's expectations and plans relating to the future. Readers
are cautioned not to place undue reliance on these forward-looking
statements as a number of important risk factors and future events
could cause the actual outcomes to differ materially from the
beliefs, plans, objectives, expectations, anticipations, estimates,
assumptions and intentions expressed in such forward-looking
statements. All of the forward-looking statements made in this
press release are qualified by these cautionary statements and
those made in the Corporation's other filings with the securities
regulators of Canada including,
but not limited to, the cautionary statements made in the relevant
sections of the Corporation's (i) Annual Information Form dated
March 27, 2024, for the financial
year ended December 31, 2023, and
(ii) Management Discussion & Analysis. The Corporation cautions
that the foregoing list of factors that may affect future results
is not exhaustive, and new, unforeseeable risks may arise from time
to time. The Corporation disclaims any intention or obligation to
update or revise any forward-looking statements or to explain any
material difference between subsequent actual events and such
forward-looking statements, except to the extent required by
applicable law.
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SOURCE G Mining Ventures Corp