Greatland Gold to buy Havieron Project in western Australia

Precious and base metals exploration and development company Greatland Gold has agreed to buy the Havieron Gold Project in western Australia from Pacific Trends Resources for an initial payment of AUD25,000 and the issuance of 65.5m shares.

The company will also issue a further 145m shares worth around AUD500,000 to Pacific Trends if it decides to begin mining at the project.

Greatland said the Havieron project, which covers 135 square kilometres in the Paterson Region of north western Australia, will provide it with a walk-up resource definition drill target and other “exciting” exploration targets in a region that is attracting increasing interest from major mining and exploration companies.

The project is located 40 km east of the prolific Telfer gold mine owned by Newcrest that has produced 27m ounces of gold since it began operations in 1977.

Executive director Callum Baxter said: “The Havieron Project has demonstrated high grade gold and copper mineralisation and provides Greatland with a walk up resource definition drill target in addition to several regional exploration targets.

“We believe that the initial consideration of AUD25,000 in cash and the issuance of 65,490,000 ordinary shares in (approximate value AUD225,000), represents a very modest initial payment given the potential at Havieron. We would also note that the second payment, the issuance of an additional 145,530,000 ordinary shares, will only occur if a bankable feasibility study is successfully completed and a decision to mine occurs at Havieron."

At 1012 BST, the shares were up 9.2% to 0.20p.