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Greatland Gold PLC on Monday reported that it secured A$340 million, or £200.2 million, of funding for its 30% owned Havieron project in Australia.
Shares were up 10% at 9.14 pence each on Monday morning in London.
The funding includes a commitment letter, including term sheet, for A$220 million on a seven-year term with a self-arranged debt syndicate, consisting of Australia & New Zealand Banking, HSBC Bank and ING Bank.
Further, the London-headquartered mine developer and explorer signed a strategic equity subscription with mining company Wyloo Metals Pty Ltd.
Under the terms of the agreement, Wyloo subscribed for 430.0 million shares at an issue price of 8.2 pence per share, raising gross proceeds of A$60 million.
In addition, the companies agreed on a future potential equity contribution of A$60 million.
The Havieron project is a joint venture with Newcrest Mining Ltd in Shire of East Pilbara in Western Australia.
‘This is a tremendous announcement for Greatland to have a pathway to being fully funded for its share of the development costs of Havieron. This outcome has been achieved through a combination of equity market support, including today's execution of strategic investment agreements with Wyloo and with the support from a syndicate of high-quality banks providing a commitment letter in respect of A$220 million of debt funding,’ Managing Director Shaun Day commented.
Separately, the company appointed Mark Barnaba as non-executive chair. He is an experienced investment banker and corporate advisor focused predominately on natural resources, Greatland said.
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