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Greatland Gold plc (LSE:GGP) has successfully completed an oversubscribed placing, raising approximately £248.6 million (around US$325.0 million) through the issuance of 5,179,010,416 new ordinary shares. The placing, priced at 4.8 pence per share, will support the Company’s strategic acquisition in the Paterson region of Western Australia.
Major Acquisition to Boost Gold-Copper Assets
In a landmark move for the Company, Greatland has entered into a binding agreement with subsidiaries of Newmont Corporation to acquire significant mining assets. The deal includes a 70% interest in the Havieron gold-copper project, consolidating Greatland's ownership to 100%, and the full ownership of the Telfer gold-copper mine. Additionally, the acquisition encompasses other related assets in the Paterson region. The total consideration for the Acquisition is up to US$475 million, which includes debt repayment obligations.
Allocation of Placing Proceeds
The funds raised from the placing will be allocated to various critical areas:
- Acquisition Costs: US$155.1 million will be directed towards the cash component of the Acquisition consideration.
- Debt Repayment: US$52.4 million will be used to repay the outstanding Havieron joint venture loan to Newmont.
- Facility Repayment: Approximately A$7.1 million will be settled under an existing working capital facility.
- Stamp Duty and Transaction Costs: Funds will cover the stamp duty associated with the Acquisition and the costs related to the Placing and Acquisition itself.
- Working Capital: Remaining funds will bolster the Company’s working capital requirements.
Retail Offer for UK Investors
Greatland Gold has also announced a Retail Offer via PrimaryBid for new ordinary shares, at the same issue price of 4.8 pence per share. This offer, aimed at investors residing in the United Kingdom, opens following this announcement and is set to close at 4:45 p.m. on 12 September 2024. The Retail Offer may be closed early if oversubscribed.
