REG - Greatland Gold PLC - Corporate Update

Greatland GoldAnnouncement

14/09/2023 07:15

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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. £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.
£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 Period   1 November 2023 to 1 December 2024
 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 Fee        1.0% of the Facility Limit, payable on first draw down
 Commitment Fee        Approximately 0.1% of the undrawn Facility Limit 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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