Corporate Update

Greatland Gold PLC

14 September 2023

 

Greatland Gold plc (AIM: GGP)

E: [e-mail]

W: https://greatlandgold.com

: twitter.com/greatlandgold

NEWS RELEASE | 14 September 2023

Corporate Update

Additional A$50 million in available funding through standby facility from cornerstone shareholder Wyloo Metals

ASX cross-listing deferred

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK MARKET ABUSE REGULATIONS.  ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Greatland Gold plc (AIM:GGP) (Greatland or the Company), a leading precious and base metals focused mining development and exploration company, is pleased to provide an update on corporate activities.

Loan facility agreed with cornerstone shareholder Wyloo

Greatland is pleased to announce that it has entered into a A$50 million (approx. £26 million) unsecured standby debt facility (Facility) with cornerstone shareholder Wyloo Consolidated Investments Pty Ltd (Wyloo).  Wyloo currently holds approximately 8.5% of Greatland shares.

At financial year-end on 30 June 2023, Greatland had A$59 million (approx. £31 million) in cash reserves (unaudited) available to fund ongoing activities. The addition of the Facility provides enhanced financial flexibility for Greatland while the Havieron Feasibility Study, underground development at Havieron and exploration in the Paterson Province continue to progress. The Facility is available to December 2024 and is undrawn.  The key terms of the Facility are detailed at the end of this announcement.

The Letter of Support remains in place for a A$220 million seven-year Havieron project finance and associated hedging facilities with its syndicate of leading banks, Australia and New Zealand Banking Group Limited (ANZ), HSBC Bank and ING Bank (Australia), as announced in its RNS Announcement titled "Havieron Debt Funding Update" dated 30 May 2023.

In combination, the existing cash balance, Wyloo Facility and the existing Letter of Support provide strategic and financial optionality for the Company.

Luca Giacovazzi, CEO of Wyloo Metals, commented: "We are proud to continue our support of Greatland through this loan facility. Havieron is an outstanding orebody that we are keen to see developed to its full potential, and we see tremendous exploration potential in the Paterson range as an emerging mineral belt."

Proposed ASX cross-listing deferred

As previously announced, Greatland has been advancing preparations for a proposed cross-listing on the Australian Securities Exchange (ASX), with significant progress made to date.

Throughout the process, Greatland's principal objective has been to undertake an ASX cross-listing in a manner and at a time that delivers an optimised outcome for the Company and its existing shareholders.  Having carefully considered the current ASX listing timetable and upcoming activities and opportunities for the business, Greatland does not believe it is optimal for the Company and its shareholders to pursue the ASX cross-listing this calendar year.

Greatland has therefore decided to defer the ASX cross-listing until next year. Greatland will continue to support the early works development of Havieron and will complete and announce an updated Mineral Resource Estimate (MRE) which is targeted for the December quarter 2023.  Greatland will also consider the expected timing for the Feasibility Study and a Decision to Mine at Havieron in assessing when to resume the ASX listing.  Deferral of the ASX cross-listing and conclusion of the Wyloo Facility also mean that the possible equity fundraising noted in the Company's announcement on 16 May 2023 is no longer under consideration at this time.

Greatland remains committed to achieving a successful listing on the ASX. The work undertaken by the Company this year provides a strong foundation to efficiently resume and complete the ASX listing process and the Company will continue to engage with the ASX in the meantime to ensure its outstanding requirements are met when the process resumes.

Greatland remains confident that investors from the Australian market provide an attractive additional source of interest in Greatland. This has been demonstrated by the significant Australian institutional participation in Greatland's equity raisings in FY23 and from Greatland's regular engagement with Australian investors. Accordingly, it remains strategically advantageous to the Company and its shareholders to engage this market.

Greatland Managing Director, Shaun Day, commented: "We are delighted by the continued support of our cornerstone shareholder, Wyloo.  The A$50 million unsecured facility provides additional flexibility for funding requirements through 2024, including completion of the Havieron Feasibility Study.

After careful reflection on a number of factors and opportunities, we believe we can achieve a better outcome for existing shareholders by deferring the proposed ASX cross-listing to a later date.  In particular, we look forward to completing an updated Mineral Resource Estimate for the world-class Havieron gold-copper deposit later this year, which will incorporate 80,000 metres of additional growth drilling since our previous MRE update in March 2022."

Wyloo Loan Facility - summary of terms

Term	Detail
Lender	Wyloo Consolidated Investments Pty Ltd ACN 646 337 439
Borrower	Greatland Holdings Group Pty Ltd ACN 662 916 752
Guarantor	Greatland Gold plc UK Registration No. 5625107
Availability Period	1 November 2023 to 1 December 2024
Maturity Date	31 December 2024
Repayment	Bullet payment of all principal and interest at the Maturity Date.  The Facility is not convertible to equity.
Facility Limit	A$50 million
Uses of funds	§ Funding Havieron joint venture called sums and chargeable costs. § Payment of interest to Newcrest Operations Limited under the Havieron joint venture loan agreement. § General working capital. § Corporate costs and expenses of the Greatland group. § Interest, fees, costs and expenses in connection with the Facility
Interest rate	Australian BBSY + 7.50% per annum, payable in cash or capitalised at Greatland's election
Upfront Fee	3.0% of the Facility Limit, paid on signing
First Draw Fee	1.0% of the Facility Limit, payable on first draw down
Commitment Fee	Approximately 0.1% of the undrawn Facility Limit per month, payable in cash monthly
Mandatory prepayment	Customary for a facility of this nature including mandatory prepayment from: § net proceeds from new borrowings entered into with an external lender(s) which are sufficient to cover amounts outstanding under the Facility; and § 50% of proceeds of any equity raised (net of costs, fees and expenses) where the amount raised exceeds A$5 million.
Events of default	Customary for a facility of this nature including non-payment, cross-default, insolvency and change of control of parent of the Borrower.
Security	Unsecured (other than the provision of a parent company guarantee by the Guarantor)

Contact

For further information, please contact:

Greatland Gold plc

Shaun Day, Managing Director  |  [e-mail]

Nominated Advisor

SPARK Advisory Partners

Andrew Emmott / James Keeshan / Neil Baldwin  |  [phone]

Corporate Brokers

Berenberg  |  Matthew Armitt / Jennifer Lee  |  [phone]

Canaccord Genuity  |  James Asensio / George Grainger |  [phone]

SI Capital Limited  |  Nick Emerson / Sam Lomanto  |  [phone]

Media Relations

UK - Gracechurch Group  | Harry Chathli / Alexis Gore / Henry Gamble  |  [phone]

Australia - Fivemark Partners  |  Michael Vaughan  |  [phone]

About Greatland

Greatland is a mining development and exploration company focused primarily on precious and base metals.

The Company's flagship asset is the world-class Havieron gold-copper project in the Paterson Province of Western Australia, discovered by Greatland and presently under development in joint venture with ASX gold major, Newcrest Mining Limited (which is the subject of an agreed takeover by Newmont Corporation that is ongoing).

Havieron is located approximately 45km east of Newcrest's existing Telfer gold mine. The box cut and decline to the Havieron orebody commenced in February 2021.  Significant progress continues on the exploration decline with total development at over 2,600 metres in early August 2023.  Subject to a positive Feasibility Study and Decision to Mine, Havieron may leverage the existing Telfer infrastructure and processing plant.

Greatland has a proven track record of discovery and exploration success and is pursuing the next generation of tier-one mineral deposits by applying advanced exploration techniques in under-explored regions.  Greatland has a number of exploration projects across Western Australia and in parallel to the development of Havieron is focused on becoming a multi-commodity miner of significant scale.

 

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