Greatland Resources (AIM:GGP) took a major symbolic step forward on Monday, executing a $500m corporate debt facility and approving the Havieron final investment decision, though the share price marked a 3% decline to 711.0p.
The company said the facility will fund Havieron development, working capital and general corporate purposes, and Greatland, which owns the Telfer mine and 100% of the adjacent Havieron development in the Paterson Province of Western Australia, described the funding as underpinning project delivery.
The facility is split into three tranches, a $250m five‑year revolving credit facility (Facility A, undrawn), a $225m seven‑year revolving credit facility (Facility B, undrawn and targeted to close at the end of June) and a $25m Contingent Instrument Facility (CIF, $17.87m drawn at 31 May), provided by a syndicate of ANZ, ING, HSBC, NAB and Westpac.
Financial close has been achieved on Facility A and the CIF, Facility B financial close is targeted after publication of an updated Ore Reserve estimate for Telfer, and the new package cancels the former $75m working capital facility and refinances the prior $25m contingent instrument facility.
Greatland reported net cash of $1,208m at 31 March and says total available liquidity would exceed $1,700m assuming Facility B closes, against Feasibility Study pre‑production capex of $1,065m to first gold and expansion capex of $673m that is expected largely to be self‑funded by Havieron cash flows.
The board approved FID after receipt of State and Federal primary environmental approvals and said substantive development will commence following grant of certain secondary environmental approvals.
"The development of Havieron, alongside the successful delivery of Telfer life extensions, has the potential to underpin a multi‑decade, world class gold‑copper mining hub in the Paterson Province," said Shaun Day, Managing Director.
