G Mining Ventures Corp. (TSE: GMIN) (OTCQX: GMINF) has agreed to acquire G2 Goldfields Inc. (TSE: GTWO) (OTCMKTS: GUYGF) in a deal that will combine two adjacent gold projects in Guyana into a single large-scale mining operation.
The companies said in a press release on Thursday that the transaction will unite the Oko West and Oko-Ghanie projects into a consolidated asset with the potential to produce more than 500,000 ounces of gold annually over its life of mine. Additionally, the combined operation is expected to benefit from shared infrastructure, lower costs and streamlined permitting.
Under the agreement, G Mining will acquire all outstanding shares of G2 through a court-approved plan of arrangement. Meanwhile, G2 shareholders will receive 0.212 shares of G Mining for each share held.
The implied offer price stands at CAD$10.84 per share, representing a 72 per cent premium based on recent trading averages. Consequently, the total equity value of the deal is estimated at approximately CAD$3.0 billion, excluding additional assets spun out into a new entity.
Additionally, G2 shareholders will receive shares in a newly formed exploration company, referred to as G3 SpinCo. This entity will hold several non-core exploration properties and will be funded with roughly CAD$45 million in cash.
G Mining said the combined project will bring together estimated life-of-mine production of about 350,000 ounces annually from Oko West and 228,000 ounces from Oko-Ghanie. In addition, management believes the integrated operation could exceed 500,000 ounces per year through optimization and expansion.
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G Mining plans to maintain existing schedule at Oko West
The deal significantly expands G Mining’s footprint in Guyana, increasing its land position to more than 362 square kilometres. Furthermore, the assets sit within a highly prospective greenstone belt known for major gold discoveries.
Executives said the transaction aligns with a broader strategy to build a large, long-life mining operation in the region. Consequently, the company aims to leverage its experience developing projects across South America to accelerate timelines and reduce risk.
G Mining plans to maintain its existing schedule for first gold production at Oko West in the second half of 2027. Meanwhile, it expects to advance technical studies for the combined project and release an updated report in 2027.
The company is targeting expanded production by the first half of 2029. Additionally, it expects the integration of the two deposits to improve mine sequencing and overall efficiency.
Management pointed to significant cost savings as a key driver behind the deal. For example, the combined project could avoid roughly CAD$850 million in capital expenditures by eliminating the need for duplicate infrastructure.
Furthermore, operating cost savings of approximately CAD$275 million are expected over the life of mine through economies of scale and reduced administrative duplication. Consequently, the company expects lower unit costs as production volumes increase.
The integration also simplifies permitting for the Oko-Ghanie project. In addition, the combined development may only require a reduced-scope environmental assessment, potentially as an amendment to existing approvals.
G Mining indicated that its balance sheet and cash flow from existing operations will support development of the project. Meanwhile, the company holds approximately USD$288 million in cash and has access to a USD$350 million credit facility.
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Combined resource bse includes 7 million ounces
Executives emphasized that the combined operation could rank among the highest-producing gold mines globally once fully developed. Additionally, they pointed to strong exploration potential across the expanded land package.
G2 leadership framed the deal as a way to reduce execution risk while maintaining exposure to future upside. Consequently, shareholders will retain a nearly 20 per cent stake in the combined company.
They also noted that the spinout entity will allow continued exploration activity outside the core project area. In addition, the structure includes contingent payments tied to future resource discoveries, potentially reaching up to USD$200 million.
The combined resource base includes approximately 7.0 million ounces in measured and indicated resources and 2.3 million ounces inferred. Furthermore, both deposits remain open at depth and along strike, suggesting additional growth potential.
G Mining expects the transaction to strengthen its growth profile significantly. Consequently, company-wide production could rise from roughly 160,000–190,000 ounces in 2026 to more than 700,000 ounces annually, excluding other projects.
The company also believes the deal will enhance access to capital markets and improve trading liquidity. Additionally, the larger scale and diversified asset base may attract broader institutional interest.
Both companies’ boards have approved the agreement, and the transaction remains subject to shareholder and regulatory approvals. Meanwhile, the firms expect to move quickly toward closing as they advance integration planning.
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