G Mining plans to use $480 million in near-term free cash flowfrom the permitted and construction-ready Tocantinzinho gold project in Para state, Brazil, to advance Oko West through technical studies to a construction decision. Tocantinzinho is to start annual commercial production of about 200,000 oz. in this year’s second half, the company said. It also announced $50 million in equity financing for the new G Mining.
“We are well-positioned to accelerate value creation at Oko West leveraging our unique expertise in building and operating mines on schedule and on budget in the Guiana Shield,” G Mining president and CEO Louis-Pierre Gignac said in a release. “We look forward to continuing to advance our ‘Buy, build, operate strategy.”
G Mining bought Tocantinzinho in late 2021 from Eldorado Gold (TSX: ELD; NYSE: EGO) for $115 million after Eldorado had invested $90 million in the project.
