La Mancha builds $313M interest in G Mining

Strategic Investment in G Mining

La Mancha Resource Capital has significantly bolstered its position in G Mining Ventures (TSX: GMIN), a company focused on South American gold projects. Through a substantial investment totaling C$427 million ($313 million), La Mancha has increased its stake, becoming the largest shareholder.

The private equity firm's subscription translates to an increase in ownership from 16.7% to 19.9%. The Luxembourg-based fund acquired 9.3 million shares at a price of C$45.89 per share. This move underscores La Mancha's confidence in G Mining's strategic direction and asset portfolio.

"This significant transaction reflects our belief in and commitment to the company’s strategy, the quality of its asset base and its long-term value-creation potential," stated Vincent Benoit, Chief Investment Officer at La Mancha.

Growth Trajectory and Production Outlook

This investment builds upon recent positive momentum for G Mining, which is poised to transition into an intermediate-scale gold producer, particularly with the advancement of the Oko West project in Guyana. Projections indicate a potential production capacity of 500,000 ounces of gold per year by 2028.

Louis-Pierre Gignac, CEO of G Mining, commented, "This additional investment by La Mancha further demonstrates its long-term support and its strong conviction in our ability to create shareholder value as we continue our evolution into a leading intermediate gold producer."

Despite this positive development, G Mining shares experienced a 5% decline to C$49.60 apiece on Monday morning trading in Toronto. This dip mirrors broader market sell-offs driven by rising oil prices and geopolitical tensions.

Project Pipeline and Financial Metrics

La Mancha Resource Fund manages approximately $2.9 billion in mining assets, holding significant stakes in companies like Endeavour Mining. G Mining's Tocantinzinho mine in Brazil is expected to yield between 160,000 and 190,000 ounces of gold this year, a slight increase from the 171,871 ounces produced in 2025. The company anticipates all-in sustaining costs (AISC) to range from $1,230 to $1,444 per ounce.

G Mining's Oko West project is slated to commence gold production in the second half of 2027, targeting approximately 350,000 ounces of gold annually over a 12.3-year mine life, with AISC estimated at $1,123 per ounce. The project boasts substantial indicated resources of 80.3 million tonnes grading 2.1 grams gold per tonne, containing 5.4 million ounces of gold. A 2025 feasibility study projects a post-tax net present value (NPV) of $2.2 billion and a post-tax internal rate of return of 27%, with a payback period of 2.9 years assuming a gold price of $2,500 per ounce. G Mining has a market capitalization of C$11.5 billion.