Greatland Gold PLC (AIM:GGP, OTC:GRLGF) has signed off a syndicated facility debt agreement with three banks - ANZ, HSBC and ING - for A$100 million to provide working capital for its Havieron and Telfer projects.
Formal completion of the US$475 million acquisition of the two projects is expected tomorrow and Greatland said this facility will give additional liquidity and flexibility to operate the Telfer gold-copper mine.
Hedging arrangements have also been put in place at Telfer through gold put options for 100,000 ounces of future production at a weighted average price of A$3,887.50 per ounce with expiry dates variously through to December 2025.
The options are a right to deliver, but not an obligation, added Greatland, meaning it retains all gold price upside exposure across 100% of Telfer production volumes.
Dean Horton, Greatland’s chief financial officer commented: “Greatland appreciates the support of these leading banks, who have been important partners since 2022 as we have evolved from a developer to, very soon, a producer."
"Together with the equity-funded working capital successfully raised for the Telfer-Havieron acquisition, the Syndicated Facility Agreement provides important liquidity and financial flexibility for Greatland's working capital requirements ahead of taking ownership of the substantial Telfer-Havieron gold-copper mine."
Greatland agreed to purchase the outstanding 70% of Havieron and 100% of Telfer from Newmont on 10 September 2024.