G Mining Ventures (GMIN) has signed off on the purchase of the Tocantinzinho gold project in northern Brazil from Eldorado Gold.
Financial details were not released.
Under the deal’s terms, Eldorado will become a cornerstone shareholder of GMIN, a Canadian-based group that is currently building itself up as an intermedia gold producer.
Tocantinzinho is the first step in that path; the open-pit gold deposit comprises about 1.8 million ounces of reserves. Average gold production is targeted at 187,000 oz. for the first eight years and 162,000 oz. over a 10-year life-of-mine.
GMIN said its leadership team will be leveraging a total of four mine builds in South America, including for Newmont (Merian) and Lundin Gold (Fruta del Norte).
“Tocantinzinho has all the key attributes GMIN was looking for in an initial acquisition, with clear visibility towards near-term construction and commercial production. This is the first step towards our vision of becoming a leading intermediate gold producer,” GMIN President and CEO Louis-Pierre Gignac said.
Eldorado first purchased Tocantinzinho through its US$120 million takeover of Brazauro Resources in 2010.
Up until this transaction, G Mining had been a mineral explorer focused on the development of the Cameron Lake property in west-central Quebec, Canada.
Source: G Mining Ventures