Greatland Gold PLC (AIM:GGP, OTC:GRLGF) has completed a US$325 million equity (£248 million) raise to acquire the Havieron and Telfer projects in Pilbara, Western Australia.
Overnight, Greatland entered into a binding agreement with partner Newmont to acquire its 70% interest in Havieron and the Telfer gold-copper mine for US$475 million.
AIM and ASX-listed Greatland said the cash raised would fully pay for the US$155 million cash element of the deal, repay a US$52 million joint venture loan to Newmont and US$7 million of stamp duty outstanding plus provide working capital to complete the deal.
Wyloo Investments, Greatland’s major shareholder and the vehicle of mining millionaire Andrew Forrest, put up US$100 million of the equity money,
Shares were issued at 4.8p each with the placing oversubscribed overall, Greatland said.
A retail offer for up to US$9 million is also now underway at the same price while a consortium of tier-1 banks has agreed to provide debt facilities up to A$750 million (£375 million).
Shaun Day, Greatland’s managing director, said: "We are delighted to have successfully closed the placing, which was strongly supported and oversubscribed.
"The placing proceeds will fully fund the cash consideration for the acquisition of 100% ownership of Havieron and Telfer, to make Greatland a material producer of gold and copper.
"Havieron is a truly world-class orebody with a defined pathway to become a low-cost, long-life gold-copper asset of significant scale.
"The acquisition of Telfer, with a defined mine plan that is materially de-risked with substantial ore stockpiles, and significant mine life extension prospects, provides us with the opportunity to take advantage of present gold market strength.
"Telfer production is expected to generate free cash flow, which we expect will help to self-fund the Havieron development.
"The acquisition will allow Greatland to finalise and complete the Havieron feasibility study, to determine the optimal mining throughput rate and development plan to deliver maximum value from the project by leveraging the existing Telfer infrastructure. “
Directors, including Day, subscribed for shares in aggregate worth around US$400,000 in the placing with Wyloo acting as the cornerstone investor.