Greatland Gold Shares Climb as Newmont Advances Deal Conditions

2 min read | September 26, 2024 08:21 AM PDT | By Team Kalkine Media

Greatland Gold Shares Climb as Newmont Advances Deal Conditions — Image source: shutterstock

Highlights

Greatland Gold PLC shares increased nearly 5% following updates on conditions related to its acquisition of assets from Newmont Corporation.
The acquisition, valued at $475 million, includes a 70% stake in the Havieron gold-copper project and full ownership of the Telfer gold-copper mine.
Significant progress has been made in remediating the Telfer tailings storage facility (TSF8), with operations now resumed and conditions moving closer to fulfillment.

Company Overview

Greatland Gold PLC (OTC:GRLGF) has reported substantial advancements in fulfilling the conditions necessary for its acquisition of key assets from Newmont Corporation (NYSE, TSX, ASX). Following a recently announced $475 million deal, which aims to secure a 70% interest in the Havieron gold-copper project along with complete ownership of the Telfer gold-copper mine, the company has made notable progress on two critical conditions.

The conditions pertain to the remediation of the Telfer tailings storage facility (TSF8), where Newmont has confirmed that the necessary remediation works have been completed. Additionally, the prohibition notice issued by the Department of Energy, Mines, Industry Regulation and Safety (Western Australia) concerning TSF8 has been lifted. This paves the way for the recommencement of tailings deposition, with Newmont reporting that Telfer processing operations have restarted as of early this week.

While these advancements are encouraging, Greatland emphasizes that not all conditions precedent have yet been fully satisfied. The company is targeting completion of the acquisition by the end of the year, contingent upon the successful operation of the Telfer processing and TSF8 for 14 consecutive days, among other requirements.

The total consideration for the acquisition comprises $155.1 million in cash, $52.4 million for a Havieron joint venture loan repayment, and $167.5 million in Greatland shares issued to Newmont. Other conditions include obtaining foreign investment approvals from Australian authorities and securing ministerial consent for the transfer of mining tenements. As these steps progress, Greatland continues to move toward a significant expansion of its operational footprint in the Paterson region.

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