REG - Greatland Gold PLC - Divestment of Tasmanian Tenements

Greatland GoldAnnouncement

05/06/2023 07:00

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RNS Number : 6284B  Greatland Gold PLC  05 June 2023

Greatland Gold plc (AIM: GGP)

E: info@greatlandgold.com

W: https://greatlandgold.com

: twitter.com/greatlandgold

 

 

NEWS RELEASE | 5 June
2023

 

 

Divestment of Tasmanian Tenements

 

Greatland retains upside exposure through milestone payments and uncapped
royalty

 

 

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) is pleased to announce
that the divestment of its Firetower and Warrentinna tenements (the Tasmanian
Tenements) will formally complete on or around 9 June 2023 following the Flynn
Gold's Option exercise (as defined below).

On 30 November 2022, Greatland announced that it had entered into an agreement
with Flynn Gold Ltd (ASX:FG1) (Flynn Gold) under which Flynn Gold had the
option (the Option) to purchase the Company's Tasmanian Tenements (see RNS
Announcement titled "Greatland enters an option agreement to sell its
Tasmanian exploration licences while retaining a future economic interest in
the projects" dated 30 November 2022).

Greatland was paid A$100,000 by Flynn Gold (satisfied by the issue of Flynn
Gold shares) in respect of the Option which was exercisable no later than 30
June 2023.  Flynn Gold has now exercised the Option to purchase the Tasmanian
Tenements.

The consideration for the purchase consists of:

(a)     Initial Consideration: A$200,000 to be satisfied by the issue of
two million (2,000,000) Flynn Gold shares at a deemed issue price of A$0.10
per Flynn Gold share; and

(b)     Deferred Consideration:

(i)      A$500,000 upon the definition of a JORC-compliant Mineral
Resource of at least 500,000 ounces of gold in aggregate within one or both of
the Tasmanian Tenements (payable in cash or Flynn Gold shares, at Flynn Gold's
election);

(ii)      A$500,000 upon the issue of a permit to mine by Mineral
Resources Tasmania in respect of any part of the Tasmanian Tenements (payable
in cash or Flynn Gold shares, at Flynn Gold's election); and

(iii)     a 1% Net Smelter Royalty payable to Greatland in respect of any
production from the Tasmanian Tenements.

Greatland Managing Director, Shaun Day, commented:

"We are pleased that Flynn Gold has exercised its Option to purchase the
Firetower and Warrentinna tenements.  Flynn Gold is a local Tasmanian
operator and is seeking to accelerate the advancement of these exploration
projects.

This transaction provides for Greatland to realise immediate value from these
tenements which are outside of our core focus locations while maintaining
ongoing exposure to the upside potential of this prospective ground.  This is
a particularly pleasing outcome at a time that Greatland is accelerating its
exploration efforts within the Paterson Province."

 

Contact

For further information, please contact:

Greatland Gold plc

Shaun Day, Managing Director  |  info@greatlandgold.com

 

Nominated Adviser

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 / Patrick Dolaghan  |  +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 a takeover by Newmont Corporation by
way of a scheme of arrangement).

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 with total development now exceeding
2,025m including over 1,600m of advance in the main access decline (as at 19
April 2023).  Subject to a positive feasibility study and Decision to Mine,
Havieron is intended to leverage the existing Telfer infrastructure and
processing plant.  Access to Telfer will de-risk the development, reduce
capital expenditure and lower the project's carbon footprint.

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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