Greatland Gold (LON: GGP) shares resumed trading following their suspension, triggered by the announcement of their acquisition of Newmont Corporation’s 70% interest in the Havieron gold-copper project, along with full ownership of the Telfer gold-copper mine and additional assets in the Paterson region.
The total transaction, comprising cash and shares, is valued at $475 million (before adjustments), comprising:
- US$207.5 million cash, including US$155.1 million Acquisition consideration (subject to certain adjustments) and a US$52.4 million repayment of the outstanding Havieron joint venture loan;
- US$167.5 million in the form of 2,669,182,291 new Greatland shares to be issued to Newmont at the Issue Price (as defined below); and
- up to US$100 million in deferred cash consideration.
The Company has published an admission document in relation to the Acquisition and Readmission (as defined below) (the Admission Document) that is available on the Company’s website at https://greatlandgold.com/investors/regulatory-news/ to persons within permitted jurisdictions.
The Havieron and Telfer mines will be operated as a unified entity. Havieron boasts a mineral resource of 8.4 million ounces of gold equivalent, with an estimated mine life of 20 years at an average annual production rate of 258,000 ounces.
Telfer has the potential to produce 426,000 ounces of gold equivalent, which could provide immediate cash flow and offers opportunities for resource expansion.
Greatland Gold has obtained a non-binding letter of support for A$750 million in bank facilities to finance the development of the Havieron project. Combined with the funds raised, this support should be sufficient to advance the project to production.
The transaction is expected to be finalized in the fourth quarter. Share trading will resume at 7:30 AM on September 11. At the placing price, Greatland Gold is valued at £499.8 million. The company also plans to list on the ASX next year.
Retail Offer by PrimaryBid
● Greatland announces a conditional offer for subscription of new Ordinary Shares via PrimaryBid;
● The Issue Price for the new Ordinary Shares is 4.8 pence per new Ordinary Share, representing a discount of approximately 30 per cent to the closing mid-price of the Company’s existing Ordinary Shares on 6 September 2024 (the Company’s shares were suspended on 9 September 2024);
● Investors can take part through PrimaryBid’s extensive network of retail brokers, wealth managers and investment platforms, (subject to such partners’ participation);
● The Retail Offer is available to both existing shareholders and new investors;
● The new Ordinary Shares to be issued pursuant to the Retail Offer and the Placing will be sold at the Issue Price;
● There is a minimum subscription of £250 per investor in the Retail Offer;
A placing has raised £248.6 million ($325 million) at a price of 4.8p per share, reflecting a 30% discount to the current market price. Wyloo will invest up to $100 million, and Newmont Corporation will acquire over 20% of Greatland Gold.
Additionally, individual shareholders can participate in a retail offer through PrimaryBid to raise up to £6.8 million. Following these developments, the share price fell by 24.80% to 5.34p.
