Greatland removes uncertainty from Havieron deal

Greatland Gold has successfully renegotiated its obligations with respect to its 2016 acquisition of the Havieron project in Western Australia from private company Five Diggers.

The project is located on a mining lease held by the Joint Venture between Greatland and Newcrest Mining, and is currently in development.

Newcrest assumed management of the JV in 2019 and has since been undertaking the ore body definition and technical studies required to support regulatory approvals and investment decisions for a staged development plan.

The project, which contains a world-class ore body, provides Greatland with a strategic position in the Paterson Province, one of the leading frontiers for the discovery of Tier 1 gold-copper deposits.

The consideration for the 2016 transaction comprised an initial payment of $25,000 in cash and 65,490,000 new ordinary shares and (originally) a further 145,530,000 new ordinary shares conditional upon Greatland’s ownership interest in Havieron reducing to 25 per cent (or less) or upon a decision to mine at Havieron (whichever occurs earlier).

In return for removing the conditionality on the contingent element of the consideration, the following modifications have been agreed:

• a two-year restriction on dealing with the Greatland shares to be issued to Five Diggers, comprising:

–  12-month lock-in, which prohibits any disposals of the shares in this period, subject to carve-outs (such as recommend takeovers)

–  a subsequent 12-month orderly market arrangement, requiring that, during this period, the shares may only be traded in consultation with the company’s broker

• a reduction in the number of shares being issued by 4.5 per cent, being a reduction of over 6.5 million shares, to a total of 138,981,150 new ordinary shares.

Greatland Gold managing director Shaun Day welcomed the outcome, which simultaneously removed the uncertainty of the long-standing share issue, reduced shareholder dilution by decreasing the number of shares being issued and introduced a two-year restriction on dealing with the shares.

“The acceptance of these terms demonstrates the confidence Five Diggers has in Greatland, together with their conviction in the Havieron project, reflecting the tremendous evolution in its understanding and potential,” he said.

Peter Davis from Five Diggers said the company was  thoroughly impressed with the rapid progress and growth of Havieron since acquisition by Greatland.

“Our intent is to be a long-term shareholder in Greatland and participate in its value creation as the full potential of Havieron and its exploration holdings are revealed,” he said.