Greatland Gold plc (AIM: GGP) (Greatland or the Company) refers to an article published in the Australian Financial Review today titled “Greatland Gold raising [A]$500m to buy Newmont’s Telfer” (Media Article).
The Media Article reports that Greatland is seeking to raise equity, with material support from Wyloo Consolidated Investments Pty Ltd (Wyloo), to fund the acquisition of Newmont Corporation’s (Newmont) joint venture interest in the Havieron gold-copper project (Havieron) and its 100% owned Telfer gold-copper mine (Telfer), (the Potential Acquisition).
The Media Article follows Newmont’s announcement on 22 February 2024 of its intention to divest a number of non-core assets, including Telfer and its Havieron joint venture interest. This also follows Greatland’s comments on 30 April 2024 and 31 July 2024 regarding its last right of refusal to acquire the remaining 70% interest in Havieron, and that accordingly Greatland considers itself strongly positioned should an opportunity arise to consolidate ownership of Havieron on accretive terms for Greatland shareholders.
Status of Potential Acquisition
Greatland confirms that it is in advanced negotiations with Newmont in respect of the Potential Acquisition, which remain incomplete, and that existing cornerstone shareholder Wyloo is intending to provide material support for the Potential Acquisition. Greatland and Newmont have entered into a binding exclusivity agreement which provides for a period of exclusivity to finalise and enter into binding transaction documentation in respect of the Potential Acquisition.
The proposed terms of the Potential Acquisition remain confidential, however Greatland notes that the proposed consideration includes a mix of upfront cash, deferred payments and equity. Settlement of the Potential Acquisition is proposed to be conditional on completion by Newmont of ongoing remediation works in respect of the Telfer tailings storage facility.
If the Potential Acquisition is ultimately agreed, settlement would be subject to (among other conditions) Greatland shareholder approval as a reverse takeover for the purposes of the AIM Rules, on the basis that the Potential Acquisition is expected to exceed one or more of the financial metric class tests set out in Schedule Three of the AIM Rules. Greatland would also be required to publish an admission document for re-admission to AIM.
The Potential Acquisition remains subject to, among other matters, the agreement of binding documentation and corporate approvals. There is no certainty that the Potential Acquisition or any other transaction will proceed at all (or the terms of any such transaction if it does proceed).
Temporary suspension of trading
In light of this leak, dealings in the Company’s ordinary shares will be temporarily suspended from trading on AIM under AIM Rule 40, with immediate effect until such time as the admission document in relation to the possible acquisition and fundraising have been published in compliance with AIM Rule 14.
Notwithstanding the temporary suspension of trading in the Ordinary Shares, the Company will continue to make announcements as and when there are any developments that require announcement under the AIM Rules.
Further developments
Greatland will announce any further developments, including the entry into any binding agreement for the Potential Acquisition, as required by its disclosure obligations.
Contact
For further information, please contact:
Greatland Gold plc
Shaun Day, Managing Director | info@greatlandgold.com
