07:39 AM EDT, 04/23/2024 (MT Newswires) -- G Mining Ventures ( GMINF ) , a day after it lost 10% on announcing that it would merge with Reunion Gold ( RGDFF ) , said on Tuesday that it has drawn the remaining approximately US$33 million on its US$75 million senior secured term loan with an affiliate of Franco-Nevada Corporation ( FNV ) .

According to a statement, the proceeds of the term loan will be used to continue the development and construction of GMIN's 100% owned Tocantinzinho Gold Project, currently under construction in the State of Para, Brazil. It said the project "remains on track and on budget" for commercial production in the second half of 2024.

In connection with the draw on the term loan, GMIN said it provided evidence to Franco-Nevada ( FNV ) that it has sufficient funding to fully satisfy the remaining project costs required to achieve commercial production and project completion, as was the case for the first draw of approximately $42 million previously announced on January 30.

"I hope this gives comfort to our shareholders that TZ construction is nearing the finish line, and remains on track and on budget for commercial production in H2-2024," Louis-Pierre Gignac, president and chief executive, said: