Greatland Gold executes AUD 100m syndicated facility agreement

The AIM-traded firm said the agreement, comprising an AUD 75m working capital facility and an AUD25m contingent instrument facility, would provide additional liquidity to support operational needs at Telfer.

Financial close of the debt facilities was expected this month, subject to standard conditions, with drawdown expected shortly thereafter.

To mitigate downside risks in gold prices, Greatland said it had also implemented a hedging programme through the purchase of put options for 100,000 ounces of Telfer gold production.

The options, with an average strike price of AUD 3,887.50 per ounce and expiries through December 2025, would provide minimum price protection while retaining full exposure to upside movements in gold prices.

Plans were in place to extend the programme to an additional 50,000 ounces.

The board said the facilities and hedging arrangements would bolster the company’s financial position and operational resilience as it integrated the Telfer mine and Havieron project into its portfolio.

Financial close was targeted ahead of the 5 February deadline for satisfying conditions precedent.

“We are pleased to have executed the AUD 100m syndicated facility agreement with our leading Australian and international natural resource banking syndicate of ANZ, ING and HSBC,” said chief financial officer Dean Horton.

“Greatland appreciates the support of these leading banks, who have been important partners since 2022 as we have evolved from a developer to, very soon, a producer.

“Together with the equity funded working capital successfully raised for the Telfer-Havieron acquisition, the syndicated facility agreement provides important liquidity and financial flexibility for Greatland's working capital requirements ahead of taking ownership of the substantial Telfer-Havieron gold-copper mine.”

At 1000 GMT, shares in Greatland Gold were up 1.52% at 7.37p.

Reporting by Josh White for Sharecast.com.