#Brazil #G Mining Ventures #Pará #Tocantinzinho Gold #SUDAM

G Mining Ventures Secures SUDAM Tax Incentive for Tocantinzinho Mine

G Mining Ventures Corp. (TSX: GMIN; OTCQX: GMINF) recently celebrated a significant milestone with the announcement that its Tocantinzinho Gold Mine (TZ) in Pará State, Brazil, has been approved for a favorable tax incentive by the Superintendência do Desenvolvimento da Amazônia (SUDAM). This initiative is expected to play a crucial role in enhancing the mine's economic viability and operational efficiency.

A Game-Changing Approval

Effective from fiscal year 2025, the nominal corporate income tax rate for Tocantinzinho will drop from 34% to approximately 15.25% for the next decade. This substantial reduction in tax not only increases the after-tax earnings but also boosts the free cash flow generated by the project. After the initial 10-year period, the tax incentive remains renewable, potentially allowing long-term benefits for G Mining Ventures and providing a solid foundation for future growth.

Louis-Pierre Gignac, the President and CEO of G Mining Ventures, articulated the significance of this approval, stating, "The approval of this tax incentive further strengthens TZ's already robust economics and affirms the value of our investment in the Amazon region." He emphasized the company's commitment to sustainable growth, mentioning that over 80% of the workforce comes from Pará, showcasing a strong dedication to local communities and job creation.

Importance of SUDAM

The Superintendência do Desenvolvimento da Amazônia (SUDAM) is a federal agency designed to stimulate sustainable economic development across the Amazon region. The tax incentive program it offers is aimed at supporting eligible projects, enhancing investment, and fostering job opportunities in one of the world’s most vital ecological areas. The current tax reduction from 34% to approximately 15% is set to facilitate investment in the region and bolster environmental initiatives alongside economic growth.

G Mining Ventures’ commitment to sustainable practices is also reflected in the composition of its workforce, as an impressive 99.8% of its employees are Brazilian, aligning with the company’s ethos of fostering local development through mining.

Strategic Implications

This tax benefit is not only a financial boon but also strategically positions G Mining Ventures to strengthen its growth pipeline. With improved margins and increased free cash flow, the Tocantinzinho project is poised as a vital resource for funding further initiatives, such as the Oko West Gold Project in Guyana and advancing exploration activities at Gurupi.

As G Mining Ventures continues to navigate the complexities of mining, the SUDAM approval stands as a testament to its strategy rooted in local engagement and economic responsibility. This approach promises not only enhanced profitability for the company but also a commitment to fostering sustainable development within Brazil's Amazon region.

With the recent announcement, G Mining Ventures solidifies its ambition to become a leading mid-tier producer in precious metals, harnessing its operational expertise and strategic location to realize its vision. The emergence of the Tocantinzinho Gold Mine as a cornerstone of this strategy aligns the company perfectly with its goals of responsible mining and economic empowerment of local communities.

In summary, G Mining Ventures’ acquisition of the SUDAM tax incentive highlights the cooperative relationship with local governance and the proactive efforts towards building a future that balances economic success with environmental stewardship. As the company moves forward, all eyes will be on its implementation of these opportunities in the ever-evolving landscape of the mining industry.