Greatland Gold said it has renegotiated the original terms of its acquisition of the Havieron gold prospect in Western Australia.
Originally, in 2016, the gold junior paid A$25,000 cash and 65.5mln in shares with further consideration of 145.5mln shares due when either its interest reduces to 25% or lower or mining starts.
Under the revised terms, that deferred consideration reduces by 4.5% to roughly 139mln shares worth £14.1mln at a share price of 10.15p, with a twelve-month lock-in added and an orderly arrangement for a further twelve months.
Newcrest Mining now has a 70% stake after funding an extensive exploration campaign at Havieron, while an arbitration decision is due imminently over the price for it to acquire a further 5% and to take its interest to 75%.
Shaun Day, Greatland Gold’s managing director, said: "This is an excellent outcome, simultaneously removing the uncertainty of this long-standing share issue, reducing shareholder dilution by decreasing the number of shares being issued and introduces a two-year restriction on dealing with the shares.
"The acceptance of these terms demonstrates the confidence Five Diggers [the vendor] has in Greatland, together with their conviction in the Havieron project, reflecting the tremendous evolution in its understanding and potential .
"Resolution of this share issue is timely given the current process under the JVA to determine the option exercise price for the 5% interest and with a Feasibility Study expected to be released in the December 2022 quarter.”