Greatland Resources Ltd (AIM:GGP, OTC:GRLGF, FRA:G8G, ASX:GGP) has locked in a $500 million corporate debt facility and formally approved the development of its flagship Havieron gold-copper project, strengthening its funding position as it prepares to build one of Australia's largest new gold-copper mines.
The company said the new facility, arranged with a lending syndicate of ANZ, ING, HSBC, NAB and Westpac, combined with its existing cash position leaves it fully funded for Havieron's development.
The announcement comes just days after Greatland secured key state and federal environmental approvals for the project, clearing an important hurdle ahead of construction activities.
Funding package strengthens balance sheet
The debt package comprises three facilities worth a combined $500 million: two revolving credit facilities totalling $475 million and a $25 million contingent instrument facility used for bank and performance guarantees.
Facility A provides $250 million over five years, while Facility B provides a further $225 million over seven years. Both facilities can be used for working capital, general corporate purposes and Havieron's development. The contingent instrument facility has already been partly drawn, with $17.87 million utilised as of May 31.
Financial close has already been achieved on Facility A and the contingent instrument facility, while Facility B is expected to close later this month following publication of an updated ore reserve estimate for the nearby Telfer operation.
Greatland said it now has access to more than $1.7 billion in available liquidity, including a net cash position of more than $1.2 billion and the new debt facilities.
Notably, the facility carries no mandatory hedging requirements, preserving exposure to future gold and copper prices.
Board gives Havieron final approval
Alongside the financing milestone, Greatland's board has approved the Final Investment Decision (FID) for Havieron, a customary step that follows the receipt of primary state and federal environmental approvals announced last week.
The company said substantive development activities will begin once certain secondary environmental approvals are granted.
According to the project's feasibility study, Havieron is expected to require about $1.065 billion in pre-production capital expenditure to first gold, followed by a further $673 million in expansion capital, much of which is expected to be funded from future project cash flows.
Management said the strength of the balance sheet could also provide flexibility to accelerate elements of the expansion program where doing so could reduce project risk or improve delivery schedules.
Managing director Shaun Day said the debt facility and investment decision created the “opportunity to deliver one of Australia's premier gold-copper projects”.
"The development of Havieron, alongside the successful delivery of Telfer life extensions, has the potential to underpin a multi-decade, world class gold-copper mining hub in the Paterson Province," he said.
Havieron sits adjacent to Greatland's 100%-owned Telfer mine in Western Australia's Paterson Province and is expected to become the centrepiece of a long-life gold and copper operation in the region. Top of FormBottom of Form