G Mining Ventures (GMIN) has signed an agreement to acquire the CentroGold Project located in Brazil's Gurupi Gold Belt, from subsidiaries of BHP Group.

This transaction includes granting BHP a net smelter return (NSR) royalty on gold production from the tenements.

The CentroGold Project hosts significant gold resources and presents an opportunity for GMIN to expand its portfolio, GMIN said.

Situated in the northern state of Maranhão, Brazil, the CentroGold project comprises 47 tenements that cover approximately 1,900km² area and include multiple gold targets.

The project's current resources, which are open for expansion, include 2.3 million ounces of JORC-compliant gold across three open-pit deposits.

A prefeasibility study by OZ Minerals in 2019, prior to its acquisition by BHP, projected a mine life of ten years with substantial initial gold production rates.

GMIN plans to redesign the CentroGold project to align with its growth strategy and the current economic environment.

This project has seen over 135,000m of core drilling, positioning it as an advanced-stage exploration asset.

The acquisition terms include a 1.0% NSR royalty to BHP on the first one million ounces of gold produced and a 1.5% NSR thereafter.

The deal is due to be completed in the first quarter of 2025, contingent on standard closing conditions and regulatory approvals.

G Mining Ventures president and CEO Louis-Pierre Gignac said: “CentroGold boasts an attractive starting resource base on a large land package that covers ~ [approximately] 1,900km² with significant exploration upside, located within a proven geological belt.”

GMIN's immediate focus, however, remains on ramping up the Tocantinzinho Gold Mine in Brazil and advancing the Oko West Gold Project in north-west Guyana towards a construction decision.

G Mining Ventures corporate strategy senior vice-president Dušan Petković said: “The acquisition of CentroGold perfectly aligns with our strategy of acquiring high-quality, undervalued assets that GMIN is uniquely qualified to unlock.

“2024 has been a transformational year for GMIN, headlined by two acquisitions that have grown our gold resource base from 2.1 million ounces measured and indicated to 8.1 million ounces, and from 50 thousand inferred to 2.2 million ounces, creating an exciting pipeline of near-term and longer-dated growth projects.”