G Mining Agrees to Acquire Gold Project in Brazil from BHP

By Adriano Marchese

G Mining Ventures said it has agreed to acquire mining permits in Brazil's Gurupi Gold Belt from wholly-owned subsidiaries of Australian mining major BHP Group.

As part of the transaction, G mining will receive the CentroGold project located in northern Brazil's Maranhao state. The project is made up of nearly 50 tenements encompassing 1,900 square kilometers and multiple gold targets, the company said Monday.

A tenement refers to a claim, licence or permit that authorizes a company to conduct mining operations.

The pre-feasibility study has outlined a 10-year mine life with 190,000 to 210,000 ounces of gold a year in the first two years of production, averaging out over its lifespan to about 100,000 to 120,000 ounces a year.

In consideration for the acquisition, G Mining will grant BHP a 1% net smelter revenue royalty on the first 1 million ounces of gold produced at the tenements and a 1.5% royalty on gold production thereafter.

G Mining said that the transaction is accretive and adds to its project pipeline with no upfront costs.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

September 09, 2024 08:06 ET (12:06 GMT)

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