GoldMining Replaces Existing Net Production Royalty on the Cachoeira Project With Net Smelter Royalty with Buy-Back Option
GoldMining Replaces Existing Net Production Royalty on the Cachoeira
Project With Net Smelter Royalty with Buy-Back Option
VANCOUVER, BC
,
Nov. 8, 2021
/CNW/ -
GoldMining Inc. (the "
Company
" or "
GoldMining
")
(TSX: GOLD) (NYSE American: GLDG) is pleased to announce
that BRI Mineração Ltda. (
"
BRI
"
), a wholly-owned subsidiary of the Company, has completed a transaction to replace the remaining 1.33% net production royalty
on the Company's Cachoeira Project in
Brazil
, with a 0.5% net smelter return royalty (
"
NSR
"
) including a buy-back right to repurchase half of the NSR. Pursuant to
the agreement with the royalty counterparty, BRI paid in Brazilian Reais the equivalent of
US$100,000
in cash and delivered 324,723 common shares of the
Company to the counterparty in settlement of a previously announced claim for pre-production royalties by the counterparty. Under the terms of the buy-back, the
Company has a period of seven years to elect to purchase half of the NSR (0.25%) upon payment in Brazilian Reais the equivalent of
US$250,000
.
Alastair Still
, CEO of GoldMining, commented, "Since acquiring the Cachoeira project in 2012, we have completed various initiatives including engineering and
environmental studies and negotiating more attractive royalty structures that can support future development. This transaction enhances the value of our
Cachoeira Project by replacing an existing net production royalty that included an annual pre-production payment, with an NSR royalty on more favourable terms
including a buy-back provision to acquire half of the NSR and no pre-production payments. It is yet another example of how we will continue our disciplined
approach of unlocking value from our portfolio of gold and gold-copper projects located throughout the Americas."
About GoldMining Inc.
GoldMining Inc. is a public mineral exploration company focused on the acquisition and development of gold assets in the Americas. Through its disciplined
acquisition strategy, GoldMining 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).
Forward-looking Statements
This document contains certain forward-looking statements that reflect the current views and/or expectations, including regarding its strategic and project plans for
its projects. 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: delays to plans
caused by restrictions and other future impacts of COVID-19 or any other inability of the Company to meet expected timelines for planned project activities,
including the timing of proposed project studies and programs; the inherent risks involved in the exploration and development of mineral properties, fluctuating
metal prices, proposed studies may not confirm GoldMining's expectations for its projects, 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, 2020
, 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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https://www.prnewswire.com/news-releases/goldmining-replaces-existing-net-production-royalty-on-the-cachoeira-project-with-net-smelter-royalty-with-buy-back-option-301417976.html
SOURCE
GoldMining Inc.
View original content:
http://www.newswire.ca/en/releases/archive/November2021/08/c9791.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 08-NOV-21