G Mining Ventures Corp. ("GMIN") and Reunion Gold Corporation ("RGD") have agreed to merge, creating a leading intermediate gold producer, in a deal valued at about $875 million based on GMIN's April 19, 2024 share price. The transaction includes RGD’s Oko West Project in Guyana. RGD shareholders will receive $0.65 per share, a 29% premium, and additional shares in a new entity, SpinCo, which will manage RGD's non-Oko West assets and be funded with $15 million by GMIN.

This merger capitalizes on GMIN’s experience in the Guiana Shield, enhancing its ability to execute projects, notably the Tocantinzinho Gold Project slated for commercial production in late 2024. The revenue from this project is expected to accelerate the development of Oko West. The focus of the merged entity will be on the Americas, with aspirations to become a key player in the gold industry.

After the merger, GMIN and RGD shareholders will respectively own approximately 57% and 43% of the new company. Significant investments of $25 million each from La Mancha and Franco-Nevada will also support the transaction.

Legal advisory roles include RBC Capital Markets and Blake, Cassels & Graydon LLP for GMIN, and BMO Capital Markets, Stikeman Elliott LLP, and SCP Resource Finance for RGD, with Norton Rose Fulbright Canada LLP advising La Mancha. The merger, guided by a court-approved plan under the Canada Business Corporations Act, is anticipated to close in Q3 2024 pending shareholder and regulatory approvals.