The Greatland Gold plc (LON: GGP) share price rallied 8.36% after issuing a corporate update regarding an unsecured standby debt facility of A$50 million (approx. £26 million) signed with cornerstone shareholder Wyloo Consolidated Investments Pty Ltd. Wyloo currently owns approximately 8.5% of Greatland shares.
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The company had A$59 million (approx. £31 million) in cash reserves (unaudited) available to fund ongoing activities at the end of its financial year on 30 June 2023. The new facility provides the company with enhanced financial flexibility while the Havieron Feasibility Study is ongoing.
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Greatland Gold is currently performing underground development at Havieron, and the exploration in the Paterson Province continues to progress. The facility is currently undrawn and is available up to December 2024.
The company also revealed that the Letter of Support remains in place for an A$220 million seven-year Havieron project finance and associated hedging facilities with its syndicate of leading banks, HSBC Bank, Australia and New Zealand Banking Group Limited (ANZ), and ING Bank (Australia).
The combination of its existing cash reserves, the unsecured standby debt facility and the Letter of Support provide multiple solid strategic options for the company. Greatland also announced that it was pausing its efforts to try and cross-list its shares on the Australian Securities Exchange (ASX).
Greatland Gold'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. After careful consideration, the company reviewed the current ASX listing timetable and upcoming activities.
The company concluded that it is not 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.
Luca Giacovazzi, the 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.”
The Greatland Gold (GGP) share price.
The Greatland Gold (GGP) share price rallied 8.36% to trade at 6.61p, from Wednesday’s closing price of 6.10p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.