It seems like a poor decision from Shaun Day, not to take the $60M, instead heās opted for a placing at a big discount to where they were trading a week or so ago.
I think you have things the wrong way round greatland didnāt turn down the money newcrest declined to take up the option it had.
Id say itās a good long term given you keep more of the asset and the company is now well financed - which the Ā£60m would have been little cash value to the company
Yep, it was Newcrestās option to take not GGPs.
In fairness, GGP fought to make the price as high as possible - Shaun Day has stated many times he would rather not sell 5% and found it frustrating.
Seems that internal issues at NCM meant GGP got away with having to sell it.
Flip side is that there wasnāt $10m coming into the coffers (first $50m would have paid back the NCM loan).
He mentioned the debt funding will be ready soon - then GGP will be fully funded to go mining.
Ahh okay, Iām not really following it at the moment but I thought:
- Newcrest wanted to pay X amount for the 5%
- GGP said no and after long discussions they got a third party in to evaluate it and decide what is a fair amount
- Newcrest have dug their heels in and wonāt pay it
So back to what I initially said, it may have been better to take what was offered?!
Only time will tell tbh, sometimes two parties just canāt agree a deal as in this case.
Greatland Gold plc (AIM:GGP), a mining development and exploration company with a focus on precious and base metals, is pleased to provide an exploration and development update at the Havieron gold-copper project in the Paterson region of Western Australia.
Two very interesting RNSās:
Every indication GGP will now be going to mine Haverion. Wyloo will scare off any potential suitors.
āfunding securedā
Some may not be happy with the amount of dilution thatās happened recently through both the placing along with the new director warrants, Wyloo strategic placing and potentially their warrants.
However you have to consider just how cashed up GGP are nowā¦ the debt funding from 3 tier 1 banks covers the entire capex burden to take Havieron into an operational mine (as well as covering the NCM loan).
Then GGP have at least Ā£50m in the bank along with warrants potentially giving them another Ā£50m in total (assuming they are passed by shareholders).
Imo Shaun Day is building a war chest so that he can expand GGP through farm outs with other junior (where GGP takes the big boy role this time) along with potentially M&A.
Heās done all of this before at Northern Star (as their CFO) and heās mentioned before how GGPs launch asset (Havieron) is much better than what Northern Star started with.
I wouldnāt be surprised to see some further activity in the following months from Shaun and the new board.
You donāt add ex Fortescue ($50bn company) directors and deputy chairs for the Board if you were content with simply sitting back and watching Havieron deliver year after year and that be it.
Very excited to see where this goes - in 5 years time Iād like to think GGP will be a mid cap miner worth at least a couple billion poundsā¦
Good news - another step forward.
All resolutions overwhelmingly passed.
Havieron Exploration and Development Update
New high grade mineralised intercepts identified in Northern Breccia and between the South East Crescent and the Eastern Breccia increasing the potential for these two zones to link