G Mining to buy G2 Goldfields for $3B in Guyana play

Canadian miner G Mining Ventures (TSX: GMIN; US-OTC: GMINF) agreed to buy G2 Goldfields (TSX: GTWO; US-OTC: GUYGF) in a $3 billion (US$2.2 billion) all-share deal that would bring two adjacent gold projects in Guyana under one roof. G2 shares soared while those of its proposed acquirer fell.

G2 shareholders will receive 0.212 common shares of G Mining for each G2 share held, implying an offer price of $10.84 per share and a 72% premium based on 30-day volume-weighted averages, according to a statement issued Thursday. The transaction is expected to close by June 30, subject to shareholder and regulatory approvals.

The deal combines G Mining’s Oko West project with G2’s Oko-Ghanie project to form a single district-scale development in the Guiana Shield. Together, both properties could deliver more than 500,000 oz. of gold annually over the life of mine, compared with standalone averages of about 350,000 oz. from Oko West and 228,000 oz. from Oko-Ghanie, G Mining said.

“Strategically, the deal makes a lot of sense as it consolidates the Oko district into a single integrated mining complex, with the assets effectively part of the same mineralized system, positioning G Mining as the natural acquirer,” TD Cowen mining analyst Steven Green said Thursday in a note.

The deal “accelerates G Mining’s transformation into a large-scale intermediate producer,” Jefferies mining analyst Fahad Tariq said in a note. “The company’s growth profile becomes increasingly anchored in Guyana.”

While the transaction is “expensive” given the premium paid, G Mining “was able to capitalize on its elevated valuation,” Tariq added. Through Wednesday, G Mining shares had more than tripled in the past year.

Consolidation wave

G2 shares surged 73% to $10.45 Thursday morning in Toronto, giving the company a market value of about $2.7 billion. G Mining plunged 4.4% to $48.88 for a market value of about $11.6 billion.

The acquisition extends a wave of consolidation in the Guiana Shield, where companies are seeking to combine adjacent deposits into larger, more capital-efficient mining complexes. After G Mining bought Reunion Gold in 2024 to advance Oko West, Miata Metals (CSE: MMET) acquired 79North to enlarge its land portfolio in Suriname and Founders Metals (TSX-V: FDR; US-OTC: FDMIF) tripled the size of its land package around the Antino project in the same country.

Approval from two-thirds of G2 shareholders is required for the deal to proceed, G Mining said. G2 shareholders and insiders with 37% ownership have already signed voting support agreements.

Besides G Mining shares, G2 shareholders will receive equity in a newly created exploration company, G3 SpinCo, which will hold certain non-core exploration properties and be funded with $45 million. A contingent value right could also deliver up to US$200 million ($278 million) in additional payments tied to future resource growth.

Existing G Mining shareholders will own about 80.1% of the company once the deal closes, compared with 19.9% for G2 shareholders. G2 shareholders will also own 100% of G3 SpinCo.

Synergies seen

Shared infrastructure, optimized mine sequencing and permitting efficiencies could result in capital and operating cost savings of more than $1 billion, G Mining said.

“Synergies are a logical and key feature of the deal,” RBC Capital Markets mining analyst Josh Wolfson said in a note. “We see a low probability of a competing offer and expect the transaction will be positively received.”

The integration is also expected to speed up development timelines, as Oko-Ghanie would benefit from Oko West’s advanced permitting status. First production at Oko West is still targeted for the second half of 2027.

Adding G2’s assets will allow G Mining to quintuple its Guyana land package to more than 362 sq. km – most of which sits within a 20 km radius of the Oko West Project. The combined property hosts “multiple highly attractive near-mine and regional-scale exploration targets” in a region that has yielded several world-class discoveries, G Mining added.

Optimal plan

Together, G Mining and G2 have measured and indicated resources of 7 million oz. grading 2.28 grams gold per tonne and inferred resources of 2.3 million ounces. Key deposits remain open at depth and along strike. 

G Mining, the operator of Brazil’s Tocantinzinho mine, said it plans to move quickly through technical studies to verify the optimal mine plan for the combined Oko project. It’s aiming to release a technical report in 2027, targeting expanded production by the first half of 2029.

Combining Oko West Project and Oko-Ghanie “delivers on our stated vision to build and operate a large, long-life, Tier-1 asset in Guyana,” G Mining CEO Louis-Pierre Gignac said in the statement.

The two projects “are highly synergistic, and we are well-positioned to accelerate value creation by leveraging our unique expertise in building and operating mines on schedule and on budget in the Guiana Shield, utilizing our deep knowledge of and network in the region to advancing permitting, and deploying our capital to build the mine. Once built, this mine has the potential to rank among the highest producing gold mines globally.”