Option agreement to sell Tasmanian tenements

RNS Number : 0597I

Greatland Gold PLC

30 November 2022

 

30 November 2022

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

( " Greatland "  or "the Company " )

Greatland enters an option agreement to sell its Tasmanian exploration licences

while retaining a future economic interest in the projects

Greatland Gold plc (AIM:GGP), a mining development and exploration company with a focus on precious and base metals, announces that it has entered into an agreement with Flynn Gold Ltd (ASX: FG1) (Flynn Gold) providing Flynn Gold an option to purchase Greatland's Tasmanian tenements, Firetower and Warrentinna, for an option fee of A$100,000 (~£55,000). The option may be exercised during the option period which ends no later than 30 June 2023.

Highlights

If the option is exercised by Flynn Gold, the following additional amounts are payable to Greatland:

§ An initial purchase price of A$200,000 (~£110,000);

§ Deferred consideration of:

§ A$500,000 (~£278,000) if a JORC resource of at least 500,000 oz of gold is announced; plus

§ A$500,000 (~£278,000) if Flynn Gold obtains a permit to mine, in respect of one or more of the tenements; and

§ A royalty equal to 1% on net smelter returns in respect of any production from the tenements.

Flynn Gold may satisfy the option fee, initial purchase price and deferred consideration in Flynn Gold shares. If that occurs, Greatland will enter into a restriction deed in respect of any Flynn Gold shares issued, to confirm that Greatland will retain that stock for at least 12 months from the relevant date of issue, subject to customary carve outs for takeover events.

Shaun Day, Managing Director of Greatland Gold plc, commented: "We are pleased to enter this agreement with Flynn Gold in respect of the Firetower and Warrentinna tenements. Flynn Gold is a local Tasmanian operator seeking to accelerate the advancement of these exploration projects.

The transactions allow Greatland to focus on its core projects in Western Australia. Greatland receives both upfront value and maintains a future economic interest in these projects, providing ongoing exposure to upside outcomes while delivering an excellent result for Greatland shareholders. "

In addition to this release, a PDF version of this report with supplementary information can be found at the Company's website: www.greatlandgold.com/media/jorc/

Enquiries:

Greatland Gold PLC Shaun Day		[e-mail] www.greatlandgold.com
SPARK Advisory Partners Limited (Nominated Adviser) Andrew Emmott/James Keeshan		[phone]
Berenberg (Joint Corporate Broker and Financial Adviser) Matthew Armitt/ Jennifer Lee/ Jack Botros		[phone]
Canaccord Genuity (Joint Corporate Broker and Financial Adviser) James Asensio/Patrick Dolaghan		[phone]
SI Capital Limited (Joint Broker) Nick Emerson/Sam Lomanto		[phone]
Gracechurch Group (Media and Investor Relations) Harry Chathli/Alexis Gore/Henry Gamble		[phone]

Additional information on the Firetower project can be found on the Company's website at https://greatlandgold.com/projects/firetower/

Additional information on the Warrentinna project can be found on the Company's website at

https://greatlandgold.com/projects/warrentinna/

In addition to this release, a PDF version of this report with supplementary information can be found at the Company's website: www.greatlandgold.com/media/jorc

Notes for Editors:

Greatland Gold plc (AIM:GGP) is a mining development and exploration company with a focus on   precious and base metals.

Greatland has a proven track record of discovery and exploration success. It is pursuing the next generation of tier-one mineral deposits by applying advanced exploration techniques in under-explored regions. The Company is focused on safe, low-risk jurisdictions and is strategically positioned in the highly prospective Paterson region. Greatland has a total of six projects across Australia with a focus on becoming a multi-commodity mining company of significant scale.

 

END

 

 

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