Greatland Gold’s deal with Wyloo Metals is a big plus for the miner, according to broker Canaccord.
Wyloo is investing £35mln at the same price as a recent placing and combined with bank facilities of £130mln (also announced today) means the junior can now focus on Havieron’s development through to production as its share of financing (30%) is now complete.
Canaccord adds that the fact the financing was arranged prior to the completion of the DFS at Havieron underlines the quality of the project.
The prospect of 70% owner and partner Newcrest taking advantage of a weak Greatland share price to take over the Havieron project is also much reduced.
Three new heavyweight appointments to Greatland's board meanwhile send a 'strong' message to the market, said Canaccord, affirming Greatland’s internal capabilities as an emerging gold developer.
“We expect these high-level appointments to assist the company in both its broader strategy and its dealings with JV partner Newcrest Mining.”
Speculative buy is the rating with a 25p price target on Greatland.