La Mancha Resource Capital has become the largest shareholder in South America-focused G Mining Ventures (TSX: GMIN) after a C$427 million ($313 million) share purchase deal.
The subscription raises La Mancha’s interest to 19.9% from 16.7%, the private equity firm reported Monday. The Luxembourg-based investment fund will buy 9.3 million shares at C$45.89 apiece.
“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,” La Mancha Chief Investment Officer Vincent Benoit said in a release. “The successful ramp-up of the Tocantinzinho mine and the ongoing development of Oko West position G Mining for significant production growth in the coming years.”
Intermediate producer momentum
The investment adds to tailwinds over the last few months for G Mining that could see it become an intermediate scale gold producer once Oko West in Guyana starts commercial production. The company forecasts producing 500,000 oz. gold per year by 2028.
“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,” G Mining CEO Louis-Pierre Gignac said in a separate release.
Despite La Mancha’s new stake, G Mining shares fell 5% to C$49.60 apiece on Monday morning in Toronto, reflecting wider market sell offs amid a surge in oil prices and geopolitical anxiety over the Middle East conflict. G Mining has a market capitalization of C$11.5 billion.
La Mancha
The La Mancha Resource Fund holds roughly $2.9 billion in mining assets including more than 10% of Endeavour Mining (LSE, TSX: EDV) and past stakes in Evolution Mining (ASX: EVN) and Elemental Altus Royalties (TSXV: ELE). La Mancha, chaired by Egyptian telecoms billionaire Naguib Sawiris, has become known for taking large minority stakes and helping build mid-tier producers.
G Mining expects its Tocantinzinho mine, located in Brazil’s northern Para state, to produce between 160,000 to 190,000 oz. of gold this year, the company said in an outlook in January. That range marks a slight increase over the 171,871 oz. produced in 2025, its first full year of production. The company guides all-in sustaining costs (AISC) at $1,230 to $1,444 per ounce.
Guyana’s mines commission granted the company its mining licence for Oko West in December, paving the way for G Mining to start pre-production open-pit operations in this year’s first quarter as construction advances. Oko West is about 100 km southwest of the capital Georgetown.
Guyana first gold
G Mining targets first gold pour at the $973 million capex Oko West in the second half of 2027. The mine should produce about 350,000 oz. of gold annually over a 12.3-year life, with AISC estimated at $1,123 per ounce.
Oko West hosts 80.3 million indicated tonnes grading 2.1 grams gold per tonne for 5.4 million oz. of contained metal, according to a feasibility study from 2025. Contained indicated gold accounts for 93% of the global resource. Inferred resources total 5.1 million tonnes grading 2.36 grams gold for about 400,000 oz. of contained metal.
At a 5% discount rate, Oko West would generate a post-tax net present value (NPV) of $2.2 billion and a post-tax internal rate of return of 27%. G Mining envisions a payback period of 2.9 years if gold averages $2,500 per ounce.
