LONDON - Greatland Gold plc (AIM:GGP), a precious and base metals exploration and development company, has finalized a Syndicated Facility Agreement for A$100 million in debt facilities with a banking syndicate comprised of ANZ, HSBC, and ING. This financial move is designed to bolster the company's liquidity and support the working capital needs of the Telfer gold-copper mine operations.
The agreement, executed on Tuesday, includes a A$75 million working capital facility and a A$25 million contingent instrument facility. These facilities are intended to cover operational costs at Telfer, early development and study costs for the Havieron project, and other corporate expenses.
In addition to the debt facilities, Greatland has secured downside price protection for its gold production through the purchase of put options for 100,000 ounces at an average price of A$3,887.50 per ounce, expiring through to December 2025. These options provide the right to sell gold at the stipulated price, offering a safety net against price drops while maintaining the potential for profit from any price increases.
The Syndicated Facility Agreement follows Greatland's acquisition of the Havieron project, the Telfer mine, and other assets in the Paterson region from Newmont Corporation (NYSE:NEM), as announced on September 10, 2024. The acquisition was primarily equity-funded, and the new debt facilities supplement these funds, providing additional financial flexibility.
The debt facilities are secured against the assets of Greatland Pty Ltd and Greatland Holdings Group Pty Ltd, including property, shares, and mining mortgages. The terms of the agreement outline customary mandatory prepayments, representations, undertakings, and events of default typical for such financial arrangements.
Greatland's CFO, Dean Horton, expressed gratitude for the support of the banking syndicate, highlighting the importance of this partnership in Greatland's transition from a developer to a producer. The financial close of the debt facilities is targeted for December 2024, with a satisfaction deadline for conditions set for February 5, 2025.
The debt facilities are set to mature on December 1, 2025, for the working capital facility, and the earlier of December 31, 2027, or 36 months after financial close for the contingent instrument facility.
This financial strategy is based on a press release statement issued by Greatland Gold plc and is aimed at providing the company with the necessary resources to manage its expanded operations effectively.
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