- Eldorado Gold has entered into a definitive agreement with G Mining Ventures Corp.
- Eldorado will receive US$20 million in cash and 19.9 per cent of GMIN shares upon closing of the transaction
- Eldorado will receive a deferred consideration of US$60 million in cash, payable by G Mining Ventures on the first anniversary of commercial production
- Eldorado will retain certain rights for so long as it maintains 10 per cent ownership of GMIN common shares
- The transaction is expected to close in the fourth quarter of 2021
- Eldorado is a gold and base metals producer with operations across the globe
- Eldorado Gold Corporation (ELD) is down 4.18 per cent, trading at C$10.65 per share at 12:15 pm ET
Eldorado Gold (ELD) has entered into a definitive agreement with G Mining Ventures Corp (GMIN) to sell its Tocantinzinho Project (TZ) in Brazil.
Under the terms of the agreement, Eldorado will receive:
- Minimum upfront consideration of US$50 million, comprised of a minimum US$20 million in cash and 19.9 per cent of GMIN shares upon closing of the transaction.
- Deferred consideration of US$60 million in cash to be paid subject to TZ commencing commercial production, payable on the first anniversary of commercial production (deferred consideration).
- GMIN has the option to defer 50 per cent of the deferred consideration at a cost of US$5 million, in which case US$30 million is payable upon the first anniversary of the commencement of commercial production and US$35 million is payable upon the second anniversary of the commencement of commercial production.
- Eldorado and GMIN will enter into an investor rights agreement granting Eldorado certain rights for so long as it maintains 10 per cent ownership of GMIN common shares.
George Burns, Eldorado’s President and Chief Executive Officer commented on the transaction.
“This transaction provides Eldorado with immediate value for TZ, while also retaining meaningful exposure to future value creation through our equity stake in GMIN.
TZ will be a cornerstone asset for GMIN, a team with a strong track record of building mines on time and on budget. Together with our local Brazilian team, we believe they are the right group to responsibly advance the asset and we look forward to following and supporting their success. On behalf of the management team and company, I would like to take this opportunity to thank Lincoln Silva and his team in Brazil for all their contributions, hard work and dedication to the company. We wish them all the best moving forward.”
The transaction is subject to customary closing conditions, including required regulatory approvals. The transaction is expected to close in the fourth quarter of 2021.
Eldorado Gold is a Canadian mid-tier gold and base metals producer with mining, development and exploration operations in Turkey, Canada, Greece, Romania, and Brazil.
Eldorado Gold Corporation (ELD) is down 4.18 per cent, trading at C$10.65 per share at 12:15 pm ET.