Greatland Gold plc (AIM:GGP) a mining development and exploration company with a focus on tier-one gold-copper deposits refers to its previous announcements, most recently on 9 December 2021, outlining that Newcrest Mining Limited (Newcrest), Greatland’s joint venture partner in the Havieron copper-gold project, has an option to acquire an additional 5% interest in the Havieron Joint Venture from Greatland at fair market value.
Newcrest has issued a notice to Greatland informing it that Newcrest would like to begin the process under the joint venture agreement to seek to agree the option exercise price in the period to mid-February 2022.
Under the joint venture agreement, if the option exercise price cannot be agreed by this date, each party is thereafter required to notify the other of its assessment of fair market value. If both parties’ assessments are within 10% of each other, the option exercise price will be the average of those assessments. If both parties’ assessments are not within 10% of each other, the parties will proceed to independent expert determination, with the expert being required to determine which of the values nominated by the parties is to be the fair market value.
Following agreement or determination of the fair market value option exercise price, Newcrest has 30 business days to exercise its option to acquire the additional 5% interest. Proceeds from the exercise will first be used to repay the outstanding balance under the existing Newcrest loan facility.
As outlined in previous announcements, most recently on 9 December 2021, following delivery of a Pre-Feasibility Study and meeting the relevant expenditure commitment, Newcrest is entitled to an additional 10% joint venture interest, and exercising this entitlement will result in an overall joint venture interest of 70% Newcrest (30% Greatland). If the option referred to above is exercised, Newcrest will be entitled to an overall joint venture interest of 75% (Greatland 25%).
Greatland Gold PLC
+44 (0)20 3709 4900
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