Greatland Gold PLC (AIM:GGP, OTC:GRLGF) shares rose almost 5% after it said "significant progress" has been made on two of the conditions needed to complete its acquisition from Newmont Corporation (NYSE:NEM, TSX:NGT, ASX:NEM).
Two weeks ago the AIM-listed company struck a US$475 million deal to acquire a 70% ownership interest in the Havieron gold-copper project, 100% ownership of the Telfer gold-copper mine, and other related interests in assets in the Paterson region, subject to certain conditions.
Greatland said progress on the two conditions related to the remediation of the Telfer tailings storage facility 8 (TSF8), where Newmont now says remediation works required for the recommencement of deposition to tailings have been completed, and the Department of Energy, Mines, Industry Regulation and Safety (Western Australia) (DEMIRS) prohibition notice on TSF8 has been lifted.
Newmont informed it that Telfer processing operations have been restarted as well as the deposition of tailings into the facility at the start of this week.
The conditions for the acquisition included that processing operations and TSF8 needed to run for 14 consecutive days.
"Accordingly, whilst the conditions precedents have not as yet been satisfied in full, significant progress has been made towards their satisfaction," said Greatland, which is targeting completion of the deal by the end of the year.
Greatland's total consideration of up to US$475 million is made up of US$155.1 million cash, the US$52.4 million Havieron JV loan repayment funded by proceeds of a US$325 million equity (£248 million) equity placing that has been completed, and US$167.5 million of Greatland shares issued to Newmount at the same price.
Other conditions also need to be satisfied include passing of the acquisition resolution at the general meeting, foreign investment approvals from the Treasurer of the Commonwealth of Australia, ministerial consent to the transfer of the Telfer and Havieron mining tenements, and certain other third-party and governmental consents.