Greatland Gold shares gained 11.2% to 9.2p in late afternoon trading on Monday, after the mining company secured A$340 million in funding for its gold-copper Haverion deposit in Australia.
The group reported the funding enabled it to fully fund its 30% share of the Haverion development, of which Newcrest holds the additional 70%.
Greatland Gold confirmed the project’s estimated value in excess of $1.2 billion, which is currently in development under a joint-venture with Newcrest Mining, the largest Australian gold producer.
The gold mining group signed a Commitment Letter, including a term sheet, for a A$220 million seven-year term, self arranged debt syndicate with HSBC Bank, Australia and New Zealand Banking Group and ING Bank in advance of its finalised feasibility study later in 2022.
Meanwhile, privately owned metals company Wyloo Metals also contributed an initial strategic equity subscription of A$60 million, with a potential further A$60 million in the future.
Greatland Gold confirmed it also intended to seek secondary dual listing on the Australian Stock Exchange to increase liquidity.
The news follows another set of optimistic drilling results from the Haverion operation.
“This is a tremendous announcement for Greatland to have a pathway to being fully funded for its share of the development costs of Havieron,” said Greatland Gold managing director Shaun Day.
“This outcome has been achieved through a combination of equity market support, including today’s execution of strategic investment agreements with Wyloo and in combination with the support from a syndicate of high-quality banks providing a commitment letter in respect of A$220m of debt funding.”
“The significant size of each bank’s commitment together with the strategic support from Wyloo highlights the long-term confidence in the Havieron gold-copper project and the strength of this world class asset.”
