REG - Greatland Gold PLC - Option agreement to sell Tasmanian tenements

Greatland GoldAnnouncement

30/11/2022 07:45

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RNS Number : 0597I  Greatland Gold PLC  30 November 2022

30 November 2022

 

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
("Greatland" or "the Company")

 

Greatland enters an option agreement to sell its Tasmanian exploration
licences

while retaining a future economic interest in the projects

 

 

Greatland Gold plc (AIM:GGP), a mining development and exploration company
with a focus on precious and base metals, announces that it has entered into
an agreement with Flynn Gold Ltd (ASX: FG1) (Flynn Gold) providing Flynn Gold
an option to purchase Greatland's Tasmanian tenements, Firetower and
Warrentinna, for an option fee of A$100,000 (~£55,000). The option may be
exercised during the option period which ends no later than 30 June 2023.

 

Highlights

 

If the option is exercised by Flynn Gold, the following additional amounts are
payable to Greatland:

§ An initial purchase price of A$200,000 (~£110,000);

§ Deferred consideration of:

§ A$500,000 (~£278,000) if a JORC resource of at least 500,000 oz of gold is
announced; plus

§ A$500,000 (~£278,000) if Flynn Gold obtains a permit to mine, in respect
of one or more of the tenements; and

§ A royalty equal to 1% on net smelter returns in respect of any production
from the tenements.

 

Flynn Gold may satisfy the option fee, initial purchase price and deferred
consideration in Flynn Gold shares. If that occurs, Greatland will enter into
a restriction deed in respect of any Flynn Gold shares issued, to confirm that
Greatland will retain that stock for at least 12 months from the relevant date
of issue, subject to customary carve outs for takeover events.

 

 

Shaun Day, Managing Director of Greatland Gold plc, commented: "We are pleased
to enter this agreement with Flynn Gold in respect of the Firetower and
Warrentinna tenements. Flynn Gold is a local Tasmanian operator seeking to
accelerate the advancement of these exploration projects.

 

The transactions allow Greatland to focus on its core projects in Western
Australia. Greatland receives both upfront value and maintains a future
economic interest in these projects, providing ongoing exposure to upside
outcomes while delivering an excellent result for Greatland shareholders."

 

In addition to this release, a PDF version of this report with supplementary
information can be found at the Company's website:
www.greatlandgold.com/media/jorc/ (https://greatlandgold.com/media/jorc/)

 

Enquiries:

 

 Greatland Gold PLC                                                    info@greatlandgold.com (mailto:info@greatlandgold.com)

 Shaun Day                                                             www.greatlandgold.com (http://www.greatlandgold.com)

 SPARK Advisory Partners Limited (Nominated Adviser)                   +44 (0)20 3368 3550

 Andrew Emmott/James Keeshan

 Berenberg (Joint Corporate Broker and Financial Adviser)              +44 (0)20 3207 7800

 Matthew Armitt/Jennifer Lee/Jack Botros

 Canaccord Genuity (Joint Corporate Broker and Financial Adviser)      +44 (0)20 7523 8000

 James Asensio/Patrick Dolaghan

 SI Capital Limited (Joint Broker)                                     +44 (0)14 8341 3500

 Nick Emerson/Sam Lomanto

 Gracechurch Group (Media and Investor Relations)                      +44 (0)20 4582 3500

 Harry Chathli/Alexis Gore/Henry Gamble

 

 

Additional information on the Firetower project can be found on the Company's
website at https://greatlandgold.com/projects/firetower/
(https://greatlandgold.com/projects/firetower/)

 

Additional information on the Warrentinna project can be found on the
Company's website at

https://greatlandgold.com/projects/warrentinna/

 

In addition to this release, a PDF version of this report with supplementary
information can be found at the Company's website:
www.greatlandgold.com/media/jorc (https://greatlandgold.com/media/jorc/)

 

 

Notes for Editors:

 

Greatland Gold plc (AIM:GGP) is a mining development and exploration company
with a focus on precious and base metals.

Greatland has a proven track record of discovery and exploration success. It
is pursuing the next generation of tier-one mineral deposits by applying
advanced exploration techniques in under-explored regions. The Company is
focused on safe, low-risk jurisdictions and is strategically positioned in the
highly prospective Paterson region. Greatland has a total of six projects
across Australia with a focus on becoming a multi-commodity mining company
of significant scale.

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