Tocantinzinho Gold Project

Located in the Tapajos region of Pará State, Brazil, 108 km from the Moraes de Almeida district and 1,150 km southwest of Belém, Tocantinzinho is a construction-ready gold project comprised of a 996 km² land package.

G Mining Ventures acquired the project from Eldorado Gold Corp. in October 2021.

On July 18, 2022, Franco-Nevada Corporation ("Franco-Nevada") announced that it was providing US$352.5 million of a total US$481 million fully committed financing package made available to G Mining Ventures Corp. ("GMIN") in connection with the development of the Tocantinzinho gold project. The balance of the package is being provided by equity private placements to two strategic investors, US$68.8 million to La Mancha Investments S.à.r.l. ("La Mancha") and US$20 million to Eldorado Gold Corporation ("Eldorado"), and by up to US$40 million in equipment financing with Caterpillar Financial Services Limited (“Cat Financial”).

The total financing package consists of

• a US$250 million gold stream with Franco-Nevada
• a US$75 million senior secured term loan from Franco-Nevada
• a US$40 million equipment financing with Cat Financial
• three separate private placements of common shares to strategic investors totaling US$116 million (including US$27.5 million from Franco-Nevada)

Gold Stream

Franco-Nevada’s wholly-owned subsidiary, Franco-Nevada (Barbados) Corporation, entered into a US$250 million gold streaming agreement with GMIN with reference to production from the Tocantinzinho project. Franco-Nevada will receive deliveries of 12.5% of the gold produced from the project until 300,000 ounces of gold has been delivered. Thereafter, it will receive 7.5% of the gold produced for the remaining life of mine. Franco-Nevada will pay 20% of the spot gold price for each ounce delivered under the agreement.

Term Loan

The US$75 million six-year term loan will have an availability period of of 3.5 years, after the stream deposit is fully drawn, at an interest rate of 3-month SOFR plus a margin of 5.75% per annum pre-project completion, with the margin reducing to 4.75% after completion.

Drawable quarterly at G Mining Ventures' option, principal, accrued interest, and accrued fees are repayable starting December 2025 with equal quarterly repayments followed by a final 25% repayment upon maturity in June 2028.

In connection with the term loan, Franco-Nevada was granted 11.5 million warrants with a five-year term and an exercise price of C$1.90 per share.

Equipment Financing

Cat Financial will provide up to US$40 million in equipment financing via a credit-approved term sheet for the supply of Caterpillar primary and ancillary mining fleet and construction machinery.

It is estimated that US$32 million of the equipment financing will be utilized during the construction period, with US$8 million to remain in reserve.

Equity Private Placement

In total, the strategic investors agreed to subscribe for a total of 189,066,765 common shares of GMIN, a non-brokered private placement basis, at a price of C$0.80 per share for aggregate combined proceeds of approximately C$151.3 million (US$116 million).

Further information can be found on Canada Newswire’s website or on accesswire.com.

G Mining Ventures is a mineral exploration company engaged in the acquisition, exploration and development of precious metal projects, to capitalize on the value uplift from successful mine development.

Franco-Nevada is the leading gold-focused royalty and streaming company with the largest and most diversified portfolio of cash-flow producing assets.