Toronto-based G Mining Ventures (GMIN) recently announced its successful acquisition of Reunion Gold, a TSX-V-listed company known for its ownership of the Oko West project in Guyana. The C$875 million deal marks a strategic move for GMIN, positioning the company to become a leading player in the intermediate gold production sector.
At the heart of the acquisition is the globally significant Oko West gold discovery, situated in the “Guiana Shield”. Located approximately 95 km west of Georgetown, the Oko West project area lies south of the historically renowned “Oko” gold district.
GMIN’s Chief Executive Officer (CEO), Louis-Pierre Gignac, expressed enthusiasm for the project’s potential, citing its alignment with the company’s growth strategy and operational expertise.
“With our deep knowledge of the region and proven track record in mine development, we are poised to unlock significant value at Oko West,” Gignac stated.
The Oko West project boasts substantial gold resources, including 4.3 million ounces in indicated resources and 1.6 million ounces in inferred resources. GMIN plans to fast-track the project through technical studies toward a construction decision, leveraging its financial strength and operational efficiency.
Under the terms of the acquisition agreement, shareholders of both GMIN and Reunion will receive common shares in a newly formed entity. Reunion shareholders will also gain shares in a newly created gold exploration company, SpinCo, which will hold Reunion’s assets other than Oko West. GMIN has committed to providing funding to SpinCo to support its exploration activities.
The transaction offers Reunion shareholders an attractive premium, with an estimated consideration of C$0.65 per share, representing a 29% premium based on recent market prices. Rick Howes, CEO of Reunion Gold, expressed confidence in the transaction, highlighting the benefits for shareholders.
“We believe this transaction delivers significant value to our shareholders, providing them with both an upfront premium and ongoing ownership in the combined company,” Howes announced.
Upon completion of the acquisition, existing shareholders of GMIN and Reunion will hold approximately 57% and 43% of the combined entity, respectively, on a fully-diluted basis. The transaction positions both G Mining Ventures and Reunion Gold for future growth and success in the gold mining sector, signaling an exciting new chapter for both companies.