Goldmining Issues Letter to Shareholders
GOLDMINING ISSUES LETTER TO
SHAREHOLDERS
VANCOUVER, BC
,
April 5, 2022
/CNW/ -
GoldMining Inc. (the "
Company
" or "
GoldMining
")
(TSX:
GOLD) (NYSE American: GLDG) is pleased to issue the following letter from its Chairman,
Amir
Adnani
, updating shareholders on the Company's progress in advancing and unlocking value from its
portfolio of assets while enhancing a peer leading balance sheet which includes cash and holdings in
Gold Royalty Corp. ("Gold Royalty").
Dear Fellow Shareholders,
The last twelve months were one of the most dynamic periods in GoldMining's 11-year history with
several key catalysts creating a sound foundation for the Company to execute various initiatives in the
years ahead to continue to unlock value from our vast portfolio of projects in the Americas.
Through GoldMining's strategic holdings of 20 million shares in Gold Royalty (NYSE American:
GROY), the Company has built an extremely robust and flexible balance sheet with approximately
$120 million
in cash and marketable securities. Following GROY's commencement of an inaugural
dividend, GoldMining expects to receive roughly
$1 million
in dividend cash flow per year. The value
of this dividend cash flow cannot be understated, as most exploration and development companies
are negative cash flowing and are forced to dilute shareholders, whereas GoldMining is in a unique
position to have meaningful, and potentially growing dividend cash flow.
Taking inspiration from the successful Gold Royalty spin out in 2021, we recently announced the
creation of U.S. GoldMining Inc. ("U.S. GoldMining"), a new subsidiary which will focus on advancing
the large Whistler gold-copper Project located northwest of
Anchorage, Alaska
. Today, with spot
gold approaching
US$2,000
per ounce and copper prices near a decade high, optimum market
conditions exist to immediately unlock substantial value by creating U.S. GoldMining without dilution to
GoldMining's capital structure. As the flagship asset of U.S. GoldMining, we believe that the Whistler
Project has district size scale to attract the attention of major producing mining companies, with
indicated mineral resources of 3.0 million gold equivalent ounces
1
and inferred mineral resources of
6.5 million gold equivalent ounces
1
covering an expansive regional land package of 17,159 hectares.
U.S. GoldMining will operate as a separate public company through an IPO or similar transaction.
Stay tuned for further announcements as we build a dedicated team and experienced board of
directors to advance this large and exciting project. See the technical report titled "NI 43-101 Mineral
Resource Estimate for the Whistler Project" with an effective date of
June 11, 2021
(as amended
October 29, 2021
), a copy of which is available under the Company's profile at
www.sedar.com
, for
further information regarding the Whistler Project and the above resource estimate.
Operationally, GoldMining has made several additions to key management roles, including the
appointment of
Alastair Still
(ex-Newmont and Goldcorp) as CEO. Under Alastair's leadership, the
Company has built a world class technical team that has started the process of de-risking and
unlocking the value of our project portfolio. Recently, we added over 50 years of global mining
industry expertise with the appointment of
Sam Mah
as our Director Engineering Studies and
Eric
Chen
as our Director Mineral Resources. Additionally, we updated our peer-leading mineral resource
portfolio by completing updated Technical Reports on core properties representing approximately
75% of GoldMining's gold equivalent mineral resources to strengthen the foundation for the next
stage of advancing our projects.
Our experienced team continues to de-risk the Company's portfolio as we analyze and seek to
demonstrate the economics of the Company's most advanced assets. GoldMining recently
announced the results of a preliminary economic assessment ("PEA") at the La Mina Project in
Colombia
. The PEA outlined roughly 1 million gold-equivalent ounces of production over 10 years with
an after-tax net present value of
US$232 million
at a conservative gold price of
US$1,600
per ounce.
La Mina's valuation spotlights how undervalued GoldMining currently is in the market, with a current
enterprise value roughly equivalent to this single asset which, on a gold equivalent ounce basis,
accounts for only 6% of our measured and indicated mineral resources and 3% of our inferred
mineral resources. Clearly, as we continue to rapidly advance our extensive portfolio of assets the
Company intends to create meaningful value for our shareholders.
The PEA is preliminary in nature and includes inferred mineral resources that are considered too
speculative geologically to have the economic considerations applied to them that would enable them
to be categorized as mineral reserves and there is no certainty that the PEA will be realized. See the
technical report titled "NI 43-101 Technical Report and Preliminary Economic Assessment" with an
effective date of
January 12, 2022
, a copy of which is available under the Company's profile at
www.sedar.com
, for further information regarding the La Mina Project.
Looking forward to the remainder of 2022, we strive to continue to add value to the La Mina Project
through an exploration drilling program on the La Garrucha zone, located less than one kilometer to
the east and immediately adjacent to the existing mineral resources. This drill program targets the
potential to grow the underlying mineral resource base of the project which could further enhance the
economics of the La Mina Project. Additionally, work continues at the São Jorge Project (São Jorge)
in
Brazil
, building upon the success of our infill sampling program that commenced in late 2021. We
see the results at São Jorge to further highlight the disconnect between our market valuation and the
value of the assets within our portfolio. In addition to driving forward the portfolio through our own
initiatives, GoldMining continues to have active discussion with various peers, developers, and major
producers as we consider potential strategic partnerships, joint ventures, and New Co's for avenues
to unlock value.
Additionally, GoldMining is in the unique position of holding a 75% interest in the high-grade uranium
exploration project called Rea that is located in the
Athabasca
region of
Canada
, one of the most
prolific geological regions for uranium globally. The uranium market has benefited from bipartisan
support and is embraced as a necessary component in the shift to a green economy. Spot prices are
up 40% year-to-date, but yet still remain only about one third of all time highs. Rea is a district-scale
project covering 125,000 hectares that could become a key asset for a uranium exploration company
to be built around or would provide meaningful exploration potential to more mature developers and
producers.
The remainder of 2022 is shaping up to be an exciting period for GoldMining, Gold Royalty and all
our stakeholders. We thank our shareholders for their continued support and look forward to
reporting further progress in the coming quarters as we execute our strategy.
1
The Whistler mineral resource estimate consists of indicated resources of 118.2 million tonnes containing 1.94 million ounces of gold grading 0.51 g/t, 8.33 million ounces of silver
grading 2.19 g/t and 422 million pounds of copper grading 0.16%; and inferred resources of 317.0 million tonnes containing 4.67 million ounces of gold grading 0.46 g/t, 16.06 million
ounces of silver grading 1.58 g/t and 711 million pounds of copper grading 0.10%.
Qualified Persons
Paulo Pereira
, P. Geo., President of GoldMining, has reviewed and approved the technical
information contained in this news release. Mr. Pereira is a Qualified Person as defined in National
Instrument 43-101 ("NI 43-101").
About GoldMining Inc.
The Company is a public mineral exploration company focused on the acquisition and development of
gold assets in the Americas. Through its disciplined acquisition strategy, the Company now controls a
diversified portfolio of resource-stage gold and gold-copper projects in
Canada
,
U.S.A.
,
Brazil
,
Colombia
and
Peru
. The Company also owns 20 million shares of Gold Royalty Corp. (NYSE
American: GROY).
Notice to Readers
Disclosure regarding Mineral Resource estimates included herein have been prepared by the
Company in accordance with NI 43-101. NI 43-101 is a rule developed by the Canadian Securities
Administrators that establishes standards for public disclosure by issuer of scientific and technical
information concerning mineral projects. NI 43-101 differs significantly from the disclosure
requirements of the United States Securities and Exchange Commission ("SEC") generally applicable
to U.S. companies subject to the SEC's disclosure requirements. For example, the terms "Indicated
Mineral Resource" and "Inferred Mineral Resource" are defined in NI 43-101 by reference to the
guidelines set out in the CIM Definition Standards on Mineral Resources and Mineral Reserves.
These definitions differ from the definitions in the disclosure requirements promulgated by the SEC.
Accordingly, information contained herein or in the Company's descriptions of its projects may not be
comparable to similar information made public by U.S. companies reporting pursuant to SEC
disclosure requirements.
Forward-looking Statements
This document contains certain forward-looking statements that reflect the current views and/or
expectations of GoldMining with respect to future growth plans and strategies, ongoing and
proposed work at the La Mina Project
, future exploration and work programs
, the results of the
PEA, the Company's plans respecting U.S. GoldMining Inc. and expectations regarding the Whistler
Project. Forward-looking statements are based on the then-current expectations, beliefs,
assumptions, estimates and forecasts about the business and the markets in which GoldMining
operates. Investors are cautioned that all forward-looking statements involve risks and
uncertainties, including: the inherent risks involved in the exploration and development of mineral
properties, fluctuating metal prices, unanticipated costs and expenses, risks related to government
and environmental regulation, social, permitting and licensing matters, and uncertainties relating to
the availability and costs of financing needed in the future. These risks, as well as others, including
those set forth in GoldMiningꞌs Annual Information Form for the year ended
November 30, 2021
,
and other filings with Canadian securities regulators and the U.S. Securities and Exchange
Commission, could cause actual results and events to vary significantly. Accordingly, readers
should not place undue reliance on forward-looking statements and information. There can be no
assurance that forward-looking information, or the material factors or assumptions used to develop
such forward-looking information, will prove to be accurate. The Company does not undertake any
obligations to release publicly any revisions for updating any voluntary forward-looking statements,
except as required by applicable securities law.
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SOURCE
GoldMining Inc.
View original content:
http://www.newswire.ca/en/releases/archive/April2022/05/c3140.html
%SEDAR: 00031036E
For further information:
GoldMining Inc., Amir Adnani, Chairman, Alastair Still, CEO, Telephone:
(855) 630-1001, Email: [email protected]
CO: GoldMining Inc.
CNW 07:00e 05-APR-22