Greatland Gold PLC (AIM:GGP, OTC:GRLGF) has confirmed it is in talks to acquire the Havieron development and nearby Telfer gold mine from partner Newmont in a deal worth A$500 million (£254 million).
Reports in Australia over the weekend said that Greatland was being funded for a large part of the deal by shareholder Wyloo with an exclusivity period signed with Newmont to complete the deal.
Wyloo is the investment vehicle of mining billionaire Andrew Forrest, who became Greatland’s largest shareholder in 2022.
Greatland discovered and was developing gold and copper prospect Havieron in Pilbara, WA with Aussie group Newcrest.
US group Newmont acquired Newcrest last year and in February said that both Havieron and Telfer, a producing gold mine in Pilbara, were non-core and would be sold.
Greatland has a right of first refusal over Havieron as part of its 30/70 joint venture with Newcrest/Newmont.
Terms of the deal are currently confidential but, in a statement, Greatland did confirm that the consideration would be a mix of upfront cash, deferred payments and equity and depend on Newmont also completing Telfer tailing storage facility remediation work.
Under AIM rules, the deal would be structured as a reverse takeover.
Shares in Greatland have been suspended in both the UK and Australia while the deal progresses.
At its suspension price of 6.95p, Greatland is valued at £350 million.