G Mining Ventures gets C$427M from La Mancha for Oko West development

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G Mining Ventures Corp (TSX:GMIN, OTCQX:GMINF, FRA:W97) said its largest shareholder, La Mancha Investments, will invest about C$427 million to maintain its ownership in the Canadian gold developer at 19.9%, reinforcing its long-term backing of the company.

The investment comes as the shareholder exercises a contractual top-up right under an investor rights agreement with G Mining Ventures that allows it to maintain a stake of up to 19.9%.

Under the agreement, G Mining Ventures will issue 9.31 million common shares to La Mancha at C$45.89 per share, generating gross proceeds of about C$427 million. The company said the transaction is expected to close on or around March 11.

Following the issuance, La Mancha will beneficially own approximately 19.9% of G Mining Ventures’ outstanding common shares.

G Mining CEO Louis-Pierre Gignac said the additional investment reflects La Mancha’s long-term support and confidence in the company’s strategy as it works to become a leading intermediate gold producer.

Vincent Benoit, managing partner and chief investment officer at La Mancha, said the investment reflects the shareholder’s view that G Mining Ventures still has “significant value creation potential,” citing the company’s growth strategy and portfolio of gold assets in Latin America.

G Mining Ventures said the proceeds will be used to reduce reliance on debt tied to the development of its Oko West Gold Project, increase exploration spending, accelerate debt repayment and support general corporate purposes.

The Oko West project remains on budget and on schedule for its first gold pour in the second half of 2027 and is fully funded through the company’s balance sheet and operating cash flow, the company added.