G Mining eyes Guyana gold project decision this month

[Redator]

G Mining Ventures (TSX: GMIN) said Monday it will decide this month whether to proceed with the Oko West project in Guyana after securing up to $537.5 million in development and construction financing.

A $350 million revolving credit facility, with a so-called “accordion feature” for another $150 million available post-closing, and $37.5 million in equipment financing through Komatsu Finance are all part of the financing package, G Mining said Monday. National Bank of Canada and Australia’s Macquarie Bank will act as joint bookrunners and co-lead arrangers of the credit facility, with Bank of Montreal, ING Capital, Royal Bank of Canada, Citibank and CIBC also taking part.

Oko West is one of two projects that G Mining is counting on to anchor future output. The other, Brazil’s Tocantinzinho, started producing gold in September 2024, with the company already booking cash flow.

“With these financing arrangements in place, together with strong cash flow from the Tocantinzinho mine, we now have the financial resources required to bring Oko West into production,” said chief financial officer Julie Lafleur. “This entirely non-dilutive package increases financial capacity, provides additional flexibility, and reflects the confidence of National Bank, Macquarie, Komatsu Finance and the broader syndicate in our ability to deliver.”

G Mining shares rose 7.7% to a record C$31.75 Monday afternoon in Toronto, boosting the company’s market value to about C$7.2 billion. Buoyed by rising gold prices, the stock has more than doubled since the start of the year.

Shovel ready

With financing now in place and an environmental permit from Guyana’s Environmental Protection Agency obtained Sept. 2, G Mining said Monday it’s positioned to make a final investment decision on the project later this month. The company will outline the forecasted initial capital cost, investment incurred to date and remaining expenditures through to completion.

Some $909 million of capital expenditures remain for Oko West, according to a company presentation to investors dated September.

At a 5% discount rate, Oko West would generate a post-tax net present value (NPV) of $2.2 billion and a post-tax internal rate of return (IRR) of 27%, G Mining said in April. That’s a 58% improvement in NPV compared with the preliminary economic assessment that the company issued in September 2024.

Located about 120 km southwest of Guyana’s capital Georgetown, Oko West will integrate both conventional open pit mining and mechanized long-hole open stoping for the underground mine.

Big deposit

Indicated mineral resources at Oko West total 80.3 million tonnes grading 2.1 grams gold per tonne for 5.4 million oz. of contained metal, G Mining said earlier this year. Gold contained in the indicated category represents 93% of the global resource. Inferred resources total 5.1 million tonnes grading 2.36 grams gold for about 400,000 oz. of contained metal.

Oko West’s construction is forecast to take 34 months, G Mining said in April. Commercial gold production would begin in the first half of 2028.

G Mining envisions a payback period of 2.9 years if gold averages $2,500 per ounce. Initial capital expenditures are projected to be $972 million, a 4% increase from the $936 million that was estimated last year.

The new credit facility will have an initial term of up to three years from closing. G Mining will pay the Secured Overnight Financing Rate plus a 0.1% credit spread adjustment and an applicable margin ranging from 2.75% to 3.75%, depending on the company’s net leverage ratio.