Greatland Gold has successfully completed the acquisition of a 70% stake in the world-class Havieron gold project it did not already own, as well as 100% of the Telfer mine, both located in the Paterson region of Australia, from Newmont Corporation.
Greatland Managing Director, Shaun Day called the acquisition a ‘watershed moment for Greatland’ as shares rose 3% on Wednesday.
The transaction, settled in a mixture of cash and shares in Greatland Gold, makes Newmont the largest shareholder in Greatland with a 20.4% stake, subject to a 12-month lock-in period and subsequent 12-month orderly market arrangement.
The Havieron project, now fully consolidated under Greatland’s control, represents a world-class gold-copper asset with a mineral resource estimate of 8.4 million ounces of gold equivalent.
According to independent reviews, the base case development scenario envisions a 2.8 million tonnes per annum mining operation producing an average of 258,000 ounces of gold equivalent annually over a 20-year mine life. The project is expected to operate at industry-leading costs, with all-in sustaining costs of US$818 per ounce in its first 15 years of steady-state production. Greatland plans to complete a Feasibility Study in the second half of 2025, which will examine potential throughput expansion opportunities.
The acquisition of the Telfer mine provides Greatland with an operational asset expected to generate immediate cash flow.
The mine benefits from approximately 11.5 million tonnes of run-of-mine ore stockpiles, significantly reducing initial production risks. An independent review projects production of 426,000 ounces of gold equivalent over 15 months at an all-in sustaining cost of US$1,454 per ounce. Notably, Greatland has secured the continued employment of 98% of Telfer’s workforce, with 435 employees accepting positions with the company.
“The closing of our acquisition today is a watershed moment for Greatland,” said Greatland Managing Director, Shaun Day.
“Greatland’s discovery of the world class Havieron orebody in 2018 established our platform for growth. Returning to 100% ownership of Havieron now gives us the opportunity and control to deliver the project’s full potential. We have a defined pathway for Havieron to become a low-cost long life gold-copper asset of significant scale.
“Telfer is an iconic Australian mine that immediately transforms Greatland into a significant producer of gold and copper, with a defined mine plan that is materially de-risked by substantial ore stockpiles, and significant mine life extension prospects. Telfer production is expected to generate significant free cash flow, which we expect will help to self-fund the completion of Havieron’s development.
“Combining Havieron and Telfer under our single ownership provides the opportunity to operate efficiently and deliver an exceptional platform for continued growth and a compelling opportunity to create value for our shareholders.”