Greatland enters an option agreement to sell its Tasmanian exploration licences
while retaining a future economic interest in the projects
Greatland Gold plc (AIM:GGP), a mining development and exploration company with a focus on precious and base metals, announces that it has entered into an agreement with Flynn Gold Ltd (ASX: FG1) (Flynn Gold) providing Flynn Gold an option to purchase Greatland’s Tasmanian tenements, Firetower and Warrentinna, for an option fee of A$100,000 (~£55,000). The option may be exercised during the option period which ends no later than 30 June 2023.
If the option is exercised by Flynn Gold, the following additional amounts are payable to Greatland:
- An initial purchase price of A$200,000 (~£110,000);
- Deferred consideration of:
- A$500,000 (~£278,000) if a JORC resource of at least 500,000 oz of gold is announced; plus
- A$500,000 (~£278,000) if Flynn Gold obtains a permit to mine, in respect of one or more of the tenements; and
- A royalty equal to 1% on net smelter returns in respect of any production from the tenements.
Flynn Gold may satisfy the option fee, initial purchase price and deferred consideration in Flynn Gold shares. If that occurs, Greatland will enter into a restriction deed in respect of any Flynn Gold shares issued, to confirm that Greatland will retain that stock for at least 12 months from the relevant date of issue, subject to customary carve outs for takeover events.
Shaun Day, Managing Director of Greatland Gold plc, commented: “We are pleased to enter this agreement with Flynn Gold in respect of the Firetower and Warrentinna tenements. Flynn Gold is a local Tasmanian operator seeking to accelerate the advancement of these exploration projects.
The transactions allow Greatland to focus on its core projects in Western Australia. Greatland receives both upfront value and maintains a future economic interest in these projects, providing ongoing exposure to upside outcomes while delivering an excellent result for Greatland shareholders. ”
In addition to this release, a PDF version of this report with supplementary information can be found at the Company’s website: www.greatlandgold.com/media/jorc/
Greatland Gold PLC
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