G Mining Ventures (TSX:GMIN) will acquire G2 Goldfields (TSX:GTWO) in a transaction valued at approximately C$3 billion, combining two adjacent gold projects in Guyana.
The court-approved plan of arrangement consolidates G2’s Oko-Ghanie Project with G Mining’s fully permitted Oko West Project, creating a single Oko Project and a mining hub with potential to produce more than 500,000 ounces of gold annually on a life-of-mine average basis.
G2 shareholders will receive 0.212 G Mining shares for each G2 share held, implying an offer price of C$10.84 per G2 share based on G Mining’s 8 April closing price. The exchange ratio represents a 72% premium based on the 30-day volume-weighted average prices of both companies.
The combined operation is expected to deliver significant synergies across throughput, operating costs, and capital expenditure through shared infrastructure, mine sequencing, and permitting efficiencies.
“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-one asset in Guyana,” G Mining Chief Executive Officer Louis-Pierre Gignac says.
G Mining’s Oko West Project has anticipated life-of-mine average gold production of approximately 350,000 ounces, while G2’s Oko-Ghanie Project is expected to produce 228,000 ounces on the same basis.
The company says it can accelerate Oko-Ghanie’s permitting timeline by combining with the fully permitted Oko West Project, with first gold production at Oko West targeted for the second half of 2027.
G2 shareholders will also receive shares in a newly created exploration company that will hold interests in the Tiger Creek property, Peters Mine property, and Property B. The spin-off company will be funded with C$45 million cash, comprising C$30 million from G2’s treasury and C$15 million from G Mining.
G2 Chief Executive Officer Dan Noone says the transaction delivers shareholders an attractive premium while providing ongoing ownership in the combined company.
“The transaction significantly de-risks the advancement of Oko-Ghanie given the financial strength, free cash flow, and development capabilities that GMIN brings to the table,” Noone says.
Upon completion, existing G Mining and G2 shareholders will own approximately 80.1% and 19.9% of G Mining respectively, while G2 shareholders will own 100% of the spin-off company.
The transaction requires approval by at least two-thirds of votes cast by G2 shareholders at a special meeting and is subject to court approval and other customary closing conditions. Completion is expected in the second quarter of 2026.
G2’s board unanimously recommends the transaction after receiving unanimous recommendation from its special committee of independent directors. ATB Cormark Capital Markets and Canaccord Genuity have provided fairness opinions stating the consideration is fair from a financial point of view.
G Mining Ventures is a gold mining company focused on the acquisition, exploration, and development of previous metals projects and mine development.
Write to Amy Rotman at Mining.com.au
Images: G Mining Ventures
