TIDMGGP
RNS Number : 4381M
Greatland Gold PLC
14 September 2023
Greatland Gold plc (AIM: GGP)
E: info@greatlandgold.com
W: https://greatlandgold.com
: twitter.com/greatlandgold
NEWS RELEASE | 14 September 2023
Corporate Update
Additional A$50 million in available funding through standby
facility from cornerstone shareholder Wyloo Metals
ASX cross-listing deferred
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED
UNDER THE UK MARKET ABUSE REGULATIONS. ON PUBLICATION OF THIS
ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION
IS CONSIDERED TO BE IN THE PUBLIC DOMAIN .
Greatland Gold plc (AIM:GGP) (Greatland or the Company), a
leading precious and base metals focused mining development and
exploration company, is pleased to provide an update on corporate
activities.
Loan facility agreed with cornerstone shareholder Wyloo
Greatland is pleased to announce that it has entered into a A$50
million (approx. GBP 26 million) unsecured standby debt facility
(Facility) with cornerstone shareholder Wyloo Consolidated
Investments Pty Ltd (Wyloo). Wyloo currently holds approximately
8.5% of Greatland shares.
At financial year-end on 30 June 2023, Greatland had A$59
million (approx. GBP 31 million) in cash reserves (unaudited)
available to fund ongoing activities. The addition of the Facility
provides enhanced financial flexibility for Greatland while the
Havieron Feasibility Study, underground development at Havieron and
exploration in the Paterson Province continue to progress. The
Facility is available to December 2024 and is undrawn. The key
terms of the Facility are detailed at the end of this
announcement.
The Letter of Support remains in place for a A$220 million
seven-year Havieron project finance and associated hedging
facilities with its syndicate of leading banks, Australia and New
Zealand Banking Group Limited (ANZ), HSBC Bank and ING Bank
(Australia), as announced in its RNS Announcement titled "Havieron
Debt Funding Update" dated 30 May 2023.
In combination, the existing cash balance, Wyloo Facility and
the existing Letter of Support provide strategic and financial
optionality for the Company.
Luca Giacovazzi, CEO of Wyloo Metals, commented: "We are proud
to continue our support of Greatland through this loan facility.
Havieron is an outstanding orebody that we are keen to see
developed to its full potential, and we see tremendous exploration
potential in the Paterson range as an emerging mineral belt."
Proposed ASX cross-listing deferred
As previously announced, Greatland has been advancing
preparations for a proposed cross-listing on the Australian
Securities Exchange (ASX), with significant progress made to
date.
Throughout the process, Greatland's principal objective has been
to undertake an ASX cross-listing in a manner and at a time that
delivers an optimised outcome for the Company and its existing
shareholders. Having carefully considered the current ASX listing
timetable and upcoming activities and opportunities for the
business, Greatland does not believe it is optimal for the Company
and its shareholders to pursue the ASX cross-listing this calendar
year.
Greatland has therefore decided to defer the ASX cross-listing
until next year. Greatland will continue to support the early works
development of Havieron and will complete and announce an updated
Mineral Resource Estimate (MRE) which is targeted for the December
quarter 2023. Greatland will also consider the expected timing for
the Feasibility Study and a Decision to Mine at Havieron in
assessing when to resume the ASX listing. Deferral of the ASX
cross-listing and conclusion of the Wyloo Facility also mean that
the possible equity fundraising noted in the Company's announcement
on 16 May 2023 is no longer under consideration at this time.
Greatland remains committed to achieving a successful listing on
the ASX. The work undertaken by the Company this year provides a
strong foundation to efficiently resume and complete the ASX
listing process and the Company will continue to engage with the
ASX in the meantime to ensure its outstanding requirements are met
when the process resumes.
Greatland remains confident that investors from the Australian
market provide an attractive additional source of interest in
Greatland. This has been demonstrated by the significant Australian
institutional participation in Greatland's equity raisings in FY23
and from Greatland's regular engagement with Australian investors.
Accordingly, it remains strategically advantageous to the Company
and its shareholders to engage this market.
Greatland Managing Director, Shaun Day, commented: "We are
delighted by the continued support of our cornerstone shareholder,
Wyloo. The A$50 million unsecured facility provides additional
flexibility for funding requirements through 2024, including
completion of the Havieron Feasibility Study.
After careful reflection on a number of factors and
opportunities, we believe we can achieve a better outcome for
existing shareholders by deferring the proposed ASX cross-listing
to a later date. In particular, we look forward to completing an
updated Mineral Resource Estimate for the world-class Havieron
gold-copper deposit later this year, which will incorporate 80,000
metres of additional growth drilling since our previous MRE update
in March 2022."
Wyloo Loan Facility - summary of terms
Term Detail
===================== =======================================================
Lender Wyloo Consolidated Investments Pty Ltd ACN 646
337 439
===================== =======================================================
Borrower Greatland Holdings Group Pty Ltd ACN 662 916
752
===================== =======================================================
Guarantor Greatland Gold plc UK Registration No. 5625107
===================== =======================================================
Availability 1 November 2023 to 1 December 2024
Period
===================== =======================================================
Maturity Date 31 December 2024
===================== =======================================================
Repayment Bullet payment of all principal and interest
at the Maturity Date. The Facility is not convertible
to equity.
===================== =======================================================
Facility Limit A$50 million
===================== =======================================================
Uses of funds -- Funding Havieron joint venture called sums
and chargeable costs.
-- Payment of interest to Newcrest Operations
Limited under the Havieron joint venture loan
agreement.
-- General working capital.
-- Corporate costs and expenses of the Greatland
group.
-- Interest, fees, costs and expenses in connection
with the Facility
===================== =======================================================
Interest rate Australian BBSY + 7.50% per annum, payable in
cash or capitalised at Greatland's election
===================== =======================================================
Upfront Fee 3.0% of the Facility Limit, paid on signing
===================== =======================================================
First Draw 1.0% of the Facility Limit, payable on first
Fee draw down
===================== =======================================================
Commitment Approximately 0.1% of the undrawn Facility Limit
Fee per month, payable in cash monthly
===================== =======================================================
Mandatory prepayment Customary for a facility of this nature including
mandatory prepayment from:
-- net proceeds from new borrowings entered into
with an external lender(s) which are sufficient
to cover amounts outstanding under the Facility;
and
-- 50% of proceeds of any equity raised (net
of costs, fees and expenses) where the amount
raised exceeds A$5 million.
===================== =======================================================
Events of default Customary for a facility of this nature including
non-payment, cross-default, insolvency and change
of control of parent of the Borrower.
===================== =======================================================
Security Unsecured (other than the provision of a parent
company guarantee by the Guarantor)
===================== =======================================================
Contact
For further information, please contact:
Greatland Gold plc
Shaun Day, Managing Director | info@greatlandgold.com
Nominated Advisor
SPARK Advisory Partners
Andrew Emmott / James Keeshan / Neil Baldwin | +44 203 368
3550
Corporate Brokers
Berenberg | Matthew Armitt / Jennifer Lee | +44 203 368 3550
Canaccord Genuity | James Asensio / George Grainger | +44 207
523 8000
SI Capital Limited | Nick Emerson / Sam Lomanto | +44 148 341
3500
Media Relations
UK - Gracechurch Group | Harry Chathli / Alexis Gore / Henry
Gamble | +44 204 582 3500
Australia - Fivemark Partners | Michael Vaughan | +61 422 602
720
About Greatland
Greatland is a mining development and exploration company
focused primarily on precious and base metals.
The Company's flagship asset is the world-class Havieron
gold-copper project in the Paterson Province of Western Australia,
discovered by Greatland and presently under development in joint
venture with ASX gold major, Newcrest Mining Limited (which is the
subject of an agreed takeover by Newmont Corporation that is
ongoing).
Havieron is located approximately 45km east of Newcrest's
existing Telfer gold mine. The box cut and decline to the Havieron
orebody commenced in February 2021. Significant progress continues
on the exploration decline with total development at over 2,600
metres in early August 2023. Subject to a positive Feasibility
Study and Decision to Mine, Havieron may leverage the existing
Telfer infrastructure and processing plant.
Greatland has a proven track record of discovery and exploration
success and is pursuing the next generation of tier-one mineral
deposits by applying advanced exploration techniques in
under-explored regions. Greatland has a number of exploration
projects across Western Australia and in parallel to the
development of Havieron is focused on becoming a multi-commodity
miner of significant scale.
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