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Greatland Gold PLC (LSE:GGP) has successfully raised £6.7 million (US$8.8 million) through a retail share offer at 4.8p, reaching the maximum fundraising goal. The offer, managed via Primary Bid, was fully subscribed, with the raised funds set to support the company's strategic acquisition plans.
This new capital injection complements a recent US$325 million placing, intended for the acquisition of the Havieron prospect and the Telfer gold mine located in Pilbara, Australia. The robust demand for the retail offer has led to preferential allocation for existing shareholders, reflecting strong investor support.
Greatland Gold is currently negotiating to acquire the Havieron development and Telfer gold mine from its partner, Newmont, in a deal valued at A$500 million (£254 million). According to recent reports, Wyloo, a key shareholder, is providing substantial funding for this acquisition, with an exclusivity agreement in place with Newmont to finalize the transaction.
In related news, the appointment of Dean Horton as Chief Financial Officer (CFO) has been deemed timely as Greatland approaches a crucial phase in the Havieron gold-copper development project. The forthcoming definitive feasibility study, due in 2024, and the need for comprehensive project funding are critical next steps.
Horton’s appointment is also seen as advantageous as Newmont progresses with the sale of its Havieron stake. Greatland Gold is well-positioned to engage in any value-enhancing opportunities that may arise, given its in-depth knowledge of the Havieron project from the existing joint venture.
Managing Director Shaun Day recently provided an update on the company’s progress during the June quarter, noting significant advancements. He highlighted the ongoing EPA approval process in Western Australia, which is proceeding as planned, and praised the resilience of the Paterson region's infrastructure despite challenging weather conditions.
Day also addressed Newmont's divestment plans, emphasizing Greatland’s deep understanding of the Havieron asset and its readiness as a strong and reliable counterparty in acquisition discussions.
