VANCOUVER - GoldMining (NYSE:GLDG) Inc. (TSX: GOLD) (NYSE American: GLDG) announced today that it has reached an agreement with Compañía de Minas Buenaventura S.A.A. to lower a third-party royalty on its wholly owned Crucero gold project in Peru.
The company has paid US$70,000 to reduce the net smelter return royalty from a maximum of 5% to 3%, with an option to further decrease it to 1% with an additional US$200,000 payment anytime in the next decade.
The Crucero Project, situated 150 km northeast of Juliaca in Peru's Puno Department, has significant gold resources. The project's mineral resource estimates include indicated resources of 30.65 million tonnes at 1.01 g/t gold totaling 0.99 million ounces, and inferred resources of 35.78 million tonnes at 1.00 g/t gold for 1.15 million ounces.
The property has seen extensive historical investment and exploration, with over 24,000 meters drilled across 79 holes, and presents multiple targets for future exploration.
GoldMining's CEO, Alastair Still, stated the royalty reduction is a strategic move to enhance the project's value and aligns with the company's approach to advance its portfolio of resource-stage gold and gold-copper projects in the Americas.
GoldMining Inc. holds a diverse collection of gold and gold-copper projects and strategic investments across Canada, the U.S.A., Brazil, Colombia, and Peru. Among its holdings are approximately 21.5 million shares of Gold Royalty Corp. (NYSE American: GROY), 9.9 million shares of U.S. GoldMining Inc. (Nasdaq: USGO), and 26.7 million shares of NevGold Corp. (TSXV: NAU), which combined had a market value of US$116.4 million as of April 26, 2024.
Readers interested in the technical details of the Crucero Property can refer to the NI 43-101 Technical Report, which is publicly available. The report adheres to Canadian Securities Administrators standards, which differ from those of the U.S. Securities and Exchange Commission, potentially leading to discrepancies in comparison with U.S. disclosures.
This article is based on a press release statement.
InvestingPro Insights
GoldMining Inc. (NYSE American: GLDG) has recently made a strategic move to enhance the value of its Crucero gold project in Peru. This decision comes at a time when the company's financial metrics and market performance are pivotal for investors. With a market capitalization of approximately $156.88 million, GoldMining Inc. is navigating the challenges of the gold mining industry. The company's price-to-book ratio over the last twelve months as of Q1 2024 stands at 1.63, which can be indicative of how the market values the company's net assets. However, the negative operating income of -$17.16 million in the same period reflects ongoing operational challenges.
Two noteworthy InvestingPro Tips for GoldMining Inc. include the company's strong liquidity position, with cash holdings exceeding its debt, and liquid assets surpassing short-term obligations. This financial stability is crucial for the company's ability to invest in and develop its projects, like the Crucero gold project. On the other hand, analysts are not expecting the company to be profitable this year, and the company has not been profitable over the last twelve months, which is a factor that investors should consider when evaluating the company's growth prospects.
For those looking to delve deeper into GoldMining Inc.'s financial health and future prospects, InvestingPro offers a comprehensive suite of additional tips. There are currently 5 more InvestingPro Tips available for GLDG, which can be accessed at https://www.investing.com/pro/GLDG. Interested investors can use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing even more insights to help make informed investment decisions.
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