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Highlights
- Greatland Gold PLC shares rise nearly 5% following progress on acquisition conditions from Newmont Corporation.
- Significant advancements made on the remediation of Telfer tailings storage facility and related operational approvals.
- The completion of the US$475 million acquisition is targeted for year-end, pending additional conditions.
Overview
Greatland Gold PLC (LSE:GGP) experienced an increase of nearly 5% in its share price after announcing "significant progress" on two key conditions necessary for finalizing its acquisition from Newmont Corporation. This acquisition, valued at US$475 million, involves a 70% ownership stake in the Havieron gold-copper project and full ownership of the Telfer gold-copper mine, along with other associated assets in the Paterson region.
The company reported that notable progress has been made regarding the remediation of the Telfer tailings storage facility 8 (TSF8). Newmont has confirmed that the necessary remediation works for the recommencement of tailings deposition have been completed, and the Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) in Western Australia has lifted its prohibition notice on TSF8.
Moreover, Newmont informed Greatland that Telfer processing operations have resumed, along with the deposition of tailings beginning earlier this week. Although the conditions for the acquisition stipulate that processing operations and TSF8 must operate for 14 consecutive days, Greatland emphasized that while these conditions have not yet been fully satisfied, substantial progress has been achieved toward meeting them.
Greatland's acquisition involves a total consideration of up to US$475 million, comprising US$155.1 million in cash, a US$52.4 million loan repayment for the Havieron joint venture funded by a completed US$325 million equity placing, and US$167.5 million in Greatland shares to be issued to Newmont.
Additional conditions that must be fulfilled include approval of the acquisition resolution at a general meeting, foreign investment approvals from the Treasurer of the Commonwealth of Australia, ministerial consent for the transfer of mining tenements, and various third-party and governmental consents. Greatland aims to complete the acquisition by the end of the year, contingent upon satisfying these conditions.
