REG - Greatland Gold PLC - Havieron Debt Funding Update

Greatland GoldAnnouncement

30/05/2023 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230530:nRSd9891Aa&default-theme=true

RNS Number : 9891A  Greatland Gold PLC  30 May 2023

E: info@greatlandgold.com

W: https://greatlandgold.com

: twitter.com/greatlandgold

 

 

NEWS RELEASE | 30 May
2023

 

 

Havieron Debt Funding Update

 

Letter of Support received from existing relationship banks to

enhance and extend financial flexibility

 

 

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

Background

On 12 September 2022, Greatland Gold plc (AIM:GGP; Greatland or Company)
announced that it had signed a commitment letter, including a terms sheet, for
A$220 million seven-year debt and associated hedging facilities with a
syndicate of leading banks: Australia and New Zealand Banking Group Limited
(ANZ), HSBC Bank (HSBC) and ING Bank (Australia) (ING) (together, the Banking
Syndicate) (Debt Commitment Letter).  Further to this announcement, the
Company is pleased to advise that it has received a Letter of Support, from
the Banking Syndicate in respect of the proposed debt and associated hedging
facilities (Letter of Support) which supersedes the Debt Commitment Letter.

Highlights

§  Letter of Support confirms the Banking Syndicate remains fully supportive
and enhances Greatland's financial flexibility

§  The update saves the Company from incurring the commitment and other fees
associated with the proposed A$220 million debt facilities until the Havieron
Feasibility Study is finalised

§  The Letter of Support in respect of the proposed A$220 million debt
confirms the Banking Syndicate remains fully supportive while the Havieron
Feasibility Study progresses with several value enhancing options underway to
maximise value and de-risk the project

§  Havieron early works including the decline development is continuing to
advance, with total development now exceeding 2,025m (as at 19 April 2023)

Operational overview

In October 2022, Newcrest Mining Limited (Newcrest), as manager of the
Havieron Joint Venture, determined that further time was required to optimise
Havieron and therefore delayed the delivery of the Havieron Feasibility Study
(see RNS Announcement titled "Havieron Exploration and Development Update"
dated 27 October 2022).  Various workstreams to support the Havieron
Feasibility Study are continuing to be progressed with several value enhancing
options underway to maximise value and de-risk the project.

The development of the Havieron decline continues to advance. Finalisation of
the Havieron Feasibility Study and a positive Decision to Mine is required
before the commencement of commercial mining operations.

Financial flexibility

Given the relative proximity of reaching the top of the Havieron orebody, it
remains Greatland's preference not to utilise the proposed A$220 million
seven-year debt and associated hedging facilities until the Havieron
Feasibility Study is finalised.

The Banking Syndicate remains fully supportive of Greatland and has provided
the Company with a Letter of Support in respect of the originally proposed
A$220 million seven-year debt and associated hedging facilities, on proposed
commercial terms which are substantially similar to those outlined in the
Company's previous announcement on 12 September 2022.  The terms set out in
the Amended Terms Sheet in connection with the Letter of Support are subject
to normal lender requirements for transactions of this nature including the
receipt of credit, risk and other internal approvals, environmental approvals
as well as the completion of due diligence satisfactory to the Banking
Syndicate, the finalisation and execution of finance documentation
satisfactory to the Banking Syndicate and satisfaction of all applicable
conditions precedent.

This cancellation of the Debt Commitment Letter saves the Company from
incurring the commitment and other fees associated with the proposed A$220
million debt and associated hedging facilities until the Havieron Feasibility
Study is finalised.  Importantly, it provides Greatland with improved
visibility with respect to ongoing requirements of the proposed debt
facilities.  The Letter of Support confirms the Banking Syndicate remains
fully supportive and further enhances Greatland's financial flexibility.

Greatland Managing Director, Shaun Day commented:

"The Letter of Support demonstrates the strength of our relationships with
ANZ, HSBC and ING and further enhances Greatland's financial flexibility for
funding of the Havieron copper-gold project.

The Letter of Support and continued backing of high-quality institutions
consolidates Greatland's position prior to finalisation of the Havieron
Feasibility Study as the decline ramp approaches the top of the Havieron
gold-copper orebody."

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.

 

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 (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCGUGDUIDXDGXG