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Greatland Gold PLC (LSE:GGP) has successfully completed a £248 million ($325 million) equity raise to acquire the Havieron and Telfer projects located in Pilbara, Western Australia. The company has secured a binding agreement with Newmont to acquire its 70% interest in the Havieron project and the Telfer gold-copper mine for a total of $475 million.
The funds raised will be allocated to cover the $155 million cash component of the acquisition, repay a $52 million joint venture loan to Newmont, settle $7 million in outstanding stamp duty, and provide working capital for the transaction. Wyloo Investments, a major shareholder of Greatland and associated with mining magnate Andrew Forrest, contributed $100 million to the equity raise.
The equity issuance was conducted at a price of 4.8 pence per share and was oversubscribed. Additionally, a retail offer is underway to raise up to $9 million at the same price, while a consortium of top-tier banks has agreed to provide debt facilities amounting to A$750 million (£375 million).
Shaun Day, Managing Director of Greatland Gold, expressed satisfaction with the successful completion of the placing, which was strongly supported and oversubscribed. He highlighted that the raised capital will fully fund the acquisition of Havieron and Telfer, positioning Greatland as a significant player in gold and copper production.
Day emphasized that Havieron represents a world-class orebody with a clear path to becoming a low-cost, long-life gold-copper asset. The Telfer acquisition, with its established mine plan and substantial ore stockpiles, offers potential for significant extension of mine life and is expected to generate free cash flow. This cash flow is anticipated to support the development of Havieron, which will benefit from leveraging Telfer’s existing infrastructure. Directors, including Day, also participated in the share placement, investing a total of approximately $400,000.
