Greatland Gold PLC (AIM:GGP, OTC:GRLGF) has expanded its acreage in the Paterson region of Western Australia with the acquisition of 1,880 square kilometres from Rio Tinto PLC (LSE:RIO) via a farm-in.
The tenements are an outstanding package, Greatland said, and host several underexplored anomalies similar to Havieron, its existing gold discovery within the Paterson province.
Greatland already holds licences adjacent to the properties through its exploration joint venture with Newcrest, which is also its partner at the Havieron development.
Under the farm-in agreement, Greatland must spend a minimum of A$1.1mln (£580,000) and drill 2,000 metres (m) before the end of 2024.
For a 51% stake, it must spend A$7.1mln and carry out 7,500m of drilling within four years.
That stake can rise to 75% if Greatland spends an additional A$14mln and drills a further 17,000m within three years of completing the Stage 1 farm-in.
Shaun Day, Greatland’s managing director, said drilling should get underway this year at some of the high-priority targets on the new ground.
“Our farm-in and joint venture with Rio Tinto is consistent with our strategy of continuing to invest in exploration success and aligns the companies responsible for the discovery of Havieron and Winu, the two biggest and most significant orebodies found within the Paterson Province since Telfer in the 1970s."
Separately, Greatland said its consortium of banks had delayed the start date of a A$220mln loan for its portion of the Havieron development and replaced the commitment letter with one of support, giving it more financial flexibility.
Greatland said it will now only utilise the funding once the feasibility study being prepared by Newcrest is completed, which will save commitment and other fees associated with the A$220mln debt and associated hedging facilities until the Havieron study is finalised.
“Importantly, it provides Greatland with improved visibility with respect to ongoing requirements of the proposed debt facilities,” said the statement, while also confirming the bank syndicate’s commitment.
Day added: “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."