9th Sep 2024 09:57
(Alliance News) - Greatland Gold PLC on Monday announced the temporary suspension of its shares from trading on AIM following a leak regarding its proposed acquisition of mining interests from Newmont Corp.
The Western Australia-focused metals exploration and development company confirmed that it is in advanced conversations with the Colorado, US-based gold miner Newmont Corp.
Discussion are said to relate to the proposed acquisition of Newmont's 70% joint venture interest in the Havieron gold-copper project and its 100% owned Telfer gold-copper mine.
In July, Newmont expressed its intention to divest from these assets after they were deemed as non-core.
The update by Greatland Gold follows an article published on Monday by the Australian Financial Review which leaked news that Greatland is seeking to raise equity, with support from Wyloo Consolidated Investments Pty Ltd, to fund the acquisition.
"The proposed terms of the potential acquisition remain confidential, however Greatland notes that the proposed consideration includes a mix of upfront cash, deferred payments and equity. Settlement of the potential acquisition is proposed to be conditional on completion by Newmont of ongoing remediation works in respect of the Telfer tailings storage facility," Greatland Gold commented.
Greatland Gold shares will be temporarily suspended with immediate effect, in compliance with AIM Rule 14, until the publication of the admission document relating to the acquisition and fundraise.
If an agreement is reached the acquisition will be carried out as a reverse takeover.
Greatland Gold shares were up 3.1% at 7.10 pence each in London on Monday morning
By Elijah Dale, Alliance News reporter
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