The financing includes commitments for seven-year debt facilities totalling A$220m ($150m) from international banks including HSBC, ANZ and ING, and a A$120m equity investment from Wyloo Metals
Greatland secures financing for Havieron project. (Credit: Alex Banner from Pixabay)
UK-based mining company Greatland Gold has closed up to A$340m ($235m) financing for the development of its Havieron gold-copper deposit in Australia.
The Havieron gold-copper deposit is currently being developed by a joint venture with Australian mining company Newcrest.
Greatland owns 30% of the JV, and Newcrest holds the remaining 70%.
The current financing includes commitments for seven-year debt facilities amounting to A$220m ($150m) from a syndicate of three international banks.
The syndicate includes HSBC, Australia and New Zealand Banking Group (ANZ), and ING Bank (Australia).
The debt facilities are expected to be realised before the finalisation of the Havieron feasibility study, which is expected later this year.
In addition, the financing includes an initial equity subscription of A$60m from Australian mining company Wyloo Metals, with an option to fund an additional A$60m.
Wyloo Metals CEO Luca Giacovazzi said: “Havieron is one of the most exciting discoveries in Western Australia’s emerging Paterson Range that continues to grow in scale and quality as the understanding of this tier-one system evolves.
“We are proud to be supporting Greatland to develop WA’s next copper-gold mine into a low-cost, modern mining operation with very high environmental and social standards.
“We are equally as excited to be supporting the Company’s ongoing exploration of its expansive tenement package, which we think has great potential for further discovery.”
Greatland intends to use the financing to fund its share of costs for the development of Havieron project into the first production, and maintain free cash flow.
Havieron property is located 45km from Newcrest’s Telfer mine, in the Paterson region of Western Australia, and was discovered by Greatland in 2018.
The operation has the largest processing facility in the Paterson province and adequate capacity and capability to process other discoveries in this region.
It is considered to be one of the world’s biggest long-life gold-copper deposits in development, estimated to value more than $1.2bn.
Furthermore, Greatland intends to add Wyloo as its strategic partner and largest shareholder to complete the Havieron funding package, after shareholder approval.