Primorus Investments PLC Update on Investment in Greatland Gold PLC (6309S)
13 March 2019 - 12:03AM
UK Regulatory
TIDMPRIM TIDMGGP
RNS Number : 6309S
Primorus Investments PLC
12 March 2019
Primorus Investments PLC
("Primorus" or the "Company")
Update on Investment in Greatland Gold PLC
Primorus Investments plc (AIM: PRIM, NEX: PRIM) is pleased to
advise shareholders that its investee company Greatland Gold PLC
("Greatland"; AIM: GGP) has today announced a US$65m, (GBPGBP50m)
farm-in agreement ("the Agreement") with Australia's leading gold
producer and one of the world's largest gold mining companies,
Newcrest Mining Limited ("Newcrest"; ASX: NCM).
Primorus owns 37m shares in Greatland, representing
approximately 1.15% of its issued share capital in Greatland,
purchased at weighted average price of 1.71p per share.
The key terms of the Agreement as set out in the announcement
released by Greatland this morning stipulate that Newcrest has the
right to acquire up to a 70% interest in 12 blocks within E45/4701
that cover the Havieron target by spending up to US$65m (roughly
GBP50m or AUD$90m) and completing a series of exploration and
development milestones in a four-stage Farm-in over six years.
Full details of today's announcement can be reviewed on the
Greatland RNS newsfeed available on the London Stock Exchange
website and on the Greatland website at
https://greatlandgold.com/.
Alastair Clayton, Executive Director, commented on the Agreement
announced this morning: "We believe this US$65m farm-in agreement
with Newcrest is an incredible result for Greatland and by default
Primorus shareholders. Our investment mandate is to identify, risk
assess and then invest early in opportunities where others may seek
to wait. We believe today's announcement is a vindication of that
strategy and will prove to be transformational for Greatland and
value accretive for Primorus."
"We note the deal includes the contemplation of using Newcrest's
existing Telfer Mine as a toll-treat facility to support any future
mining opportunities at Havieron, potentially reducing any future
large capital expenditure requirements and the many years needed to
permit and build a commercial mine.
"In short this farm-in has, in my opinion, the potential to open
up the entire Havieron region to commercial mining in a time frame
and cost that stand-alone operations could never compete with."
He added: "I am immensely pleased that we have been to provide
our shareholders with exposure to what we believe is an excellent
opportunity. We will continue to hold our shares in Greatland and,
funds permitting, add to our position in the future as we believe
they remain hugely undervalued".
For further information, please contact:
Primorus Investments plc: +44 (0) 20 7440 0640
Alastair Clayton
Nominated Adviser: +44 (0) 20 7213 0880
Cairn Financial Advisers LLP
James Caithie / Sandy Jamieson
Broker: +44 (0) 20 3621 4120
Turner & Pope Investments
Andy Thacker
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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