TIDMGGP
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.
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END
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