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(Alliance News) - Greatland Gold PLC on Tuesday said it entered a farm-in and joint-venture deal with Rio Tinto Exploration Pty Ltd to expand its tenure in the Paterson province in Australia.
The London-based development and exploration company, specialising in one-tier gold and copper deposits in Australia, is entitled to a 75% interest in the Rio Tinto's 100% owned Paterson South project under a two-stage farm-in deal.
Under stage one of the farm-in, Greatland can earn a 51% interest in Paterson South project by spending AUD1.7million, or GBP896,174 of exploration expenditure, as well as drilling 7,500 metres within four years. Under stage two, Greatland is also entitled to earn an additional 24% join-venture interest in incurring an additional AUD14 million on the project.
Rio Tinto Exploration is a subsidiary of the Anglo-Australian mining and metals company, Rio Tinto PLC.
Greatland Managing Director Shaun Day said: "The Paterson South Project tenement package is an outstanding opportunity with a number of high priority, highly prospective and heritage cleared drill targets. We expect that some of these targets can be incorporated in our 2023 drilling campaign."
On Tuesday, Greatland also said it received a letter of support from Australia & New Zealand Banking Group, HSBC Bank and ING Bank Australia regarding proposed debt and associated hedging facilities.
Back in September, Greatland signed a commitment letter with the self-arranged banking syndicate for a AUD220 million seven year proposed debt term, which will go towards its 30% owned Havieron project.
Day added: "The letter of support demonstrates the strength of our relationships with ANZ, HSBC and ING and further enhances Greatland's financial flexibility for funding of the Havieron copper-gold project."
Shares in Greatland were up 7.7% at 7.78 pence each in London on Tuesday morning.
By Sabrina Penty, Alliance News reporter
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