GoldMining Announces Renewed At-the-Market Equity Program

Rhea-AI Summary

GoldMining Inc (TSX: GOLD) (NYSE: GLDG) has renewed its at-the-market equity program (ATM Program), allowing the distribution of up to US$50 million worth of common shares. The shares will be sold at prevailing market prices through a syndicate of agents led by BMO Nesbitt Burns Inc. and BMO Capital Markets Corp.

The proceeds will fund exploration and development of mineral properties, complete minimum work programs, maintain property rights, fund future acquisitions, and provide working capital. The program will be effective until December 24, 2025, or until the aggregate gross sales reach US$50 million. This ATM Program replaces the previous one that expires on December 31, 2024.

Positive

• Secured potential funding up to US$50 million through ATM Program
• Flexibility in timing and amount of share sales at market prices
• Multiple intended uses of proceeds including property development and acquisitions

Negative

• Potential dilution of existing shareholders through new share issuance
• No guarantee of full utilization of the ATM Program

Insights

Financial Analyst

The renewed US$50 million ATM equity program represents a significant financing mechanism for GoldMining. The structure allows flexible capital raising by selling shares at prevailing market prices, avoiding the steep discounts typically associated with traditional equity offerings. However, this could lead to gradual share dilution if fully utilized.

The program's strategic value lies in providing working capital optionality and funding for property maintenance and exploration without immediate dilution pressure. With a market cap of $155.1 million, the ATM's size at $50 million represents approximately 32% of current market value, indicating substantial potential dilution if fully exercised. The syndicate of reputable agents, led by BMO, adds credibility but also suggests significant fees.

The one-year timeline until December 2025 provides measured selling flexibility, while the discretionary nature means the company isn't obligated to use the facility. This renewal essentially maintains financial flexibility without immediate dilution impact.

Mining Industry Specialist

The ATM program renewal signals GoldMining's focus on maintaining its exploration portfolio while preserving financial flexibility. The structure enables funding for minimum work programs and property payments - critical for maintaining mining claims and advancing exploration assets. The timing aligns with the broader mining sector's need for efficient capital access amid volatile commodity markets.

Most notably, the facility provides capacity for opportunistic acquisitions in a market where junior mining valuations remain depressed. The ability to tap markets quickly for acquisition funding could prove valuable if distressed assets become available. However, the potential dilution risk needs careful management against the company's exploration and development objectives.

VANCOUVER, BC, Dec. 20, 2024 /PRNewswire/ - GoldMining Inc. (the "Company" or "GoldMining") (TSX: GOLD) (NYSE: GLDG) announces it has renewed its at-the-market equity program (the "ATM Program") that allows the Company to distribute up to US$50 million (or the equivalent in Canadian dollars) of common shares of the Company (the "Offered Shares") to the public from time to time, through the Agents (as defined below), at the Company's discretion. The Offered Shares sold under the ATM Program, if any, will be sold at the prevailing market price at the time of sale.

Sales of Offered Shares through the ATM Program will be made pursuant to the terms of an equity distribution agreement dated December 20, 2024 (the "Distribution Agreement") with a syndicate of agents led by BMO Nesbitt Burns Inc. and BMO Capital Markets Corp., and including Canaccord Genuity, H.C. Wainwright & Co., LLC, Laurentian Bank Securities Inc. and Roth Capital Partners, LLC (collectively, the "Agents").

The Company intends to use the net proceeds of any such sales under the ATM Program to fund the exploration and development of its mineral properties, including to complete minimum work programs, property payments and other expenditures to maintain the Company's property rights, to fund future acquisitions as may be determined by the Company, and for working capital.

Under the Distribution Agreement, sales of Offered Shares will be made by the Agents through "at-the-market distributions" as defined in National Instrument 44-102 – Shelf Distributions on the Toronto Stock Exchange, NYSE American or any other trading market for the Offered Shares in Canada or the United States. The Company is not obligated to make any sales of Offered Shares under the Distribution Agreement. Unless earlier terminated by the Company or the Agents as permitted therein, the Distribution  Agreement will terminate upon the earlier of (a) the date that the aggregate gross sales proceeds of the  Offered Shares sold under the ATM Program reaches the aggregate amount of US$50 million (or the equivalent in Canadian dollars); or (b) December 24, 2025.

The ATM Program will become effective upon the filing of a prospectus supplement to the Company's short form base shelf prospectus dated November 24, 2023, and U.S. registration statement on Form F-10 filed November 28, 2023. The prospectus supplement relating to the ATM Program will be filed shortly with the securities commissions in each of the provinces and territories of Canada and with the United States Securities and Exchange Commission. Copies of the prospectus supplement, the Distribution Agreement and other relevant documents will be available on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov. Alternatively, the lead agent will send copies of such documents to investors upon request.

The renewed ATM Program replaces the Company's at-the-market equity program that commenced in November 2023 and expires on December 31, 2024. 

In Canada:

BMO Nesbitt Burns Inc.
Brampton Distribution Centre C/O
Attention: The Data Group of Companies
9195 Torbram Road
Brampton, Ontario L6S 6H2
Email: torbramwarehouse@datagroup.ca
Telephone: (905) 791-3151, ext. 4312

In the United States:

BMO Capital Markets Corp.
Attention: Equity Syndicate Department
151 W 42nd Street, 32nd Floor
New York, New York 10036
Email: bmoprospectus@bmo.com 

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities, nor will there be any sale of, the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About GoldMining Inc.

GoldMining Inc. is a public mineral exploration company focused on acquiring and developing gold assets in the Americas. Through its disciplined acquisition strategy, GoldMining now controls a diversified portfolio of resource-stage gold and gold-copper projects in Canada, the U.S.A., Brazil, Colombia, and Peru. The Company also owns 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). See www.GoldMining.com for additional information.

Forward-looking Information

This news release contains certain forward-looking statements that reflect the current views and/or expectations, including those regarding the intended use of proceeds raised from the ATM Program and the future issuance of Offered Shares thereunder. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the markets in which GoldMining operates. Forward-looking information includes statements that address or discuss activities, events or developments that the Company expects or anticipates may occur in the future. When used in this news release, words such as "estimates", "expects", "plans", "anticipates", "will", "believes", "intends" "should", "could", "may" and other similar terminology are intended to identify such forward-looking information. These statements involve significant uncertainties, known and unknown risks, uncertainties and other factors and, therefore, actual results, performance or achievements of the Company and its industry may be materially different from those implied by such forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including: risks that the conditions to effectiveness of the ATM Program may not be satisfied; the Company may not sell any of the Offered Shares or may raise less than the maximum offering amount under the ATM Program; management has broad discretion in the use of proceeds from the ATM Program; delays to project plans caused by governmental restrictions and other future impacts or any other inability of the Company to meet expected timelines for planned project activities, including the timing of proposed project studies and programs; the inherent risks involved in the exploration and development of mineral properties; fluctuating metal prices; proposed studies may not confirm GoldMining's expectations for its projects; unanticipated costs and expenses; risks related to government and environmental regulation; social, permitting and licensing matters; and uncertainties relating to the availability and costs of financing needed in the future. These risks, as well as others, including those set forth in GoldMiningꞌs Annual Information Form for the year ended November 30, 2023, and other filings with Canadian securities regulators and the U.S. Securities and Exchange Commission, could cause actual results and events to vary significantly. Accordingly, readers should not place undue reliance on forward-looking statements and information. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward-looking information, will prove to be accurate. The Company does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.

View original content:https://www.prnewswire.com/news-releases/goldmining-announces-renewed-at-the-market-equity-program-302337813.html

SOURCE GoldMining Inc.

FAQ

What is the maximum value of shares GLDG can sell under the new ATM Program?

GoldMining can sell up to US$50 million (or the equivalent in Canadian dollars) worth of common shares under the new ATM Program.

When does GLDG's new ATM Program expire?

The new ATM Program will terminate on December 24, 2025, unless the US$50 million maximum is reached earlier.

How will GLDG use the proceeds from the ATM Program?

The proceeds will be used to fund mineral property exploration and development, complete minimum work programs, maintain property rights, fund future acquisitions, and for working capital.

Which investment banks are leading GLDG's ATM Program?

BMO Nesbitt Burns Inc. and BMO Capital Markets Corp. are leading the syndicate of agents for the ATM Program.

At what price will GLDG shares be sold under the ATM Program?

The shares will be sold at the prevailing market price at the time of sale.