G Mining Ventures Strikes Deal to Acquire G2 Goldfields

G Mining Ventures (TSX:GMIN,OTCQX:GMINF) announced plans to acquire G2 Goldfields (TSXV:GTWO,OTCQX:GUYGF) in an estimated US$2.13 billion all-stock transaction, moving to consolidate two adjacent projects in Guyana to create one of the largest and lowest-cost gold-mining hubs in the Americas.

The definitive agreement will merge G Mining's fully permitted Oko West project with G2’s Oko-Ghanie project.

G2 shareholders will receive 0.212 G Mining common shares for each G2 share held. Upon completion, G Mining shareholders will own 80.1 percent of the combined entity, with G2 shareholders holding the remaining 19.9 percent.

"Combining GMIN’s Oko West Project and G2’s Oko-Ghanie Project delivers on our stated vision to build and operate a large, long-life, Tier-1 asset in Guyana," said G Mining CEO Louis-Pierre Gignac in a Thursday (April 9) press release.

"Once built, this mine has the potential to rank among the highest producing gold mines globally."

By combining the adjacent properties, G Mining expects to unlock over US$710 million in capital and operating cost savings. Consolidating the two projects will also eliminate the need to construct a distinct mill and tailings facility for Oko-Ghanie, saving approximately US$603.5 million in capital expenditures.

Additionally, shared infrastructure and integrated mine sequencing are forecast to generate roughly US$195.3 million in operating cost reductions over the mine's life.

The transaction also simplifies the regulatory pathway for G2's asset. G Mining notes that integrating Oko-Ghanie with the fully permitted Oko West project is expected to streamline execution, as it will only require a reduced-scope environmental and social impact assessment as an addendum to the existing Oko West permit.

The targeted timeline for first gold production at Oko West in the second half of 2027 remains unchanged.

As part of the transaction, G2’s remaining exploratory assets outside the immediate Oko footprint will be spun out into a newly created entity, referred to as "G3 SpinCo." G2 shareholders will retain 100 percent ownership of G3, which will be capitalized with US$31.95 million in cash. Furthermore, G3 will receive a contingent value right that could pay out up to US$200 million depending on future resource growth at the acquired properties.

The deal follows G Mining's rapid expansion and strong financial footing. Last month, the company reported a massive 221 percent year-on-year increase in its proven and probable mineral reserves, reaching 6.52 million ounces of gold, largely driven by the completion of the Oko West feasibility study.

The Guyana expansion will be self-funded by G Mining's robust balance sheet, which boasts US$288 million in cash and an undrawn US$350 million credit facility.

This liquidity is anchored by strong cash flows from the company's Tocantinzinho mine in Brazil, which achieved its first full year of commercial production in 2025, yielding 171,871 ounces of gold at strong margins.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.