Left to right: Elizabeth Gaines, Shaun Day, Mark Barnaba and James “Jimmy” Wilson. Barnaba , Gaines and Wilson recently joined Greatland’s board. Barnaba is a natural resources investment banker and Deputy Chair of Fortescue Metals Group Ltd. Gaines is the former Fortescue CEO and Managing Director. Wilson is the former president of BHP’s iron ore division.
Greatland Gold plc recently executed debt and equity agreements to secure up to a total of A$340 million ($230 million) in new funding that is expected to enable Greatland to fully fund its 30% share of Havieron into production.
Discovered by Greatland in 2018, Havieron has the potential to become a long-life, gold-copper project. It provides Greatland with a strategic position in the Paterson Province of Western Australia, one of the leading frontiers for the discovery of tier-one gold-copper deposits.
The project is currently in development under a joint venture with Newcrest Mining, Australia’s largest gold producer. Havieron is located just 45 km from Newcrest’s Telfer mine. This allows the project to leverage Telfer’s existing infrastructure and processing plant to significantly reduce the project’s capital expenditure and carbon impact for a low-cost pathway to development under an ore tolling arrangement.
The funding consists of a commitment letter for a A$220-million ($149 million), seven-year term, self-arranged debt syndicate with three leading banks: Australia and New Zealand Banking Group Limited (ANZ), HSBC Bank and ING Bank (Australia). In addition, Wyloo Metals has proposed a A$120 million ($81 million) equity investment in Greatland.
“This is a tremendous announcement for Greatland to have a pathway to being fully funded for its share of the development costs of Havieron,” Greatland Gold Managing Director Shaun Day said.
Completion of the debt facilities and the Wyloo placement will enable Greatland to be fully funded for its 30% of the Havieron project development based upon the 2 million metric-ton-per-year (mt/y) pre-feasibility study released in October 2021; and well positioned to be fully funded with respect to the feasibility study targeting an expansion to around 3 million mt/y due in the December 2022 quarter.
