G Mining Ventures Announces Proposed Exercise of Share Purchase Warrants Held by Franco-Nevada
G Mining Ventures Announces Proposed Exercise of Share Purchase
Warrants Held by Franco-Nevada
BROSSARD, QC
,
Nov. 6, 2024
/CNW/ -
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
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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CNW 18:00e 06-NOV-24