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Greatland Gold Says Newcrest to Exercise 5% Havieron Option

Trade Greatland Gold Shares Your Capital Is At Risk
Updated: 21 Dec 2021
  • Greatland Gold's share price is up 14%
  • Newcrest Mining asks to exercise its option of an additional 5% stake in Havieron copper-gold project
  • The proceeds will be used to repay the outstanding balance under the Newcrest loan facility

Newcrest Mining, Greatland Gold's (LON: GGP) joint venture partner in the Havieron copper-gold project, is exercising an option to acquire an additional 5% in the project at fair market value as part of the Joint Venture agreement, the companies said Tuesday. 

Greatland Gold, the mining development and exploration company, told investors that Newcrest issued a notice stating it would like to begin the process under the agreement to seek to agree on the option exercise price in the period to mid-February 2022.

Greatland Gold shares are up 14% to 14.4p following the news. 

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While fair market value has yet to be determined by the companies, once it is, Newcrest has 30 business days to exercise its option to acquire the additional 5% interest. 

The money raised will first be used to repay the outstanding balance under the existing Newcrest loan facility, stated Greatland.

Newcrest is entitled to an additional 10% joint venture interest. If they exercise the entitlement, it will result in an overall joint venture interest of 70% for Newcrest (30% Greatland). If the 10% and 5% options are exercised, Newcrest's interest will be 75%.

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