Greatland executes $500m facility, makes final investment decision for Havieron

(Sharecast News) - Greatland Resources said on Monday that it had executed a $500m corporate debt facility and approved the final investment decision for its flagship Havieron gold-copper project in Western Australia.

The AIM-traded company said the facility had been agreed with a lending syndicate comprising ANZ, ING, HSBC, NAB and Westpac, and followed a binding commitment letter announced in December.

It said the debt facility was consistent with the earlier commitment letter, including having no mandatory hedging requirement.

The facility comprises a $250m undrawn five-year revolving credit facility for working capital and general corporate purposes, including Havieron development, and a $225m undrawn seven-year revolving credit facility for the same purposes.

It also includes a $25m contingent instrument facility for bank and performance guarantees, of which $17.87m had been drawn as at 31 May.

Greatland said financial close had been achieved on the first revolving credit facility and the contingent instrument facility, while financial close on the second revolving facility was targeted for the end of June following publication of an updated ore reserve estimate for Telfer.

The company's previous $75m undrawn working capital facility with ANZ, ING and HSBC had been cancelled, while its former $25m contingent instrument facility had been refinanced by the new facility.

Greatland said its board had also approved the final investment decision to develop Havieron, following receipt of primary state and federal environmental approvals.

Substantive development after the final investment decision would begin following the grant of certain secondary environmental approvals.

The company said it had a net cash position of more than $1.2bn, and would have more than $1.7bn of available liquidity subject to financial close of the second facility.

It said that left it fully funded to deliver Havieron's development, with the feasibility study estimating pre-production capital expenditure of $1.07bn to first gold and expansion capex of $673m, largely expected to be self-funded from Havieron cash flows.

Greatland added that its balance sheet strength gave it the option to consider accelerating elements of the expansion capex where that could reduce delivery and schedule risk.

Managing director Shaun Day said the execution of the corporate debt facility and Havieron final investment decision provided the opportunity to deliver "one of Australia's premier gold-copper projects".

"The development of Havieron, alongside the successful delivery of Telfer life extensions, has the potential to underpin a multi-decade, world class gold-copper mining hub in the Paterson Province," he said.

At 1346 BST, shares in Greatland Resources were down 0.61% at 728.5p.

Reporting by Josh White for Sharecast.com.

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