RE: 'remainder of the Havieron licence'3 Apr 2020 09:37
There's a paragraph right at the bottom of the Farm-In RNS that explains the 'Right of First Refusal" concept.
Right of First Refusal: If Greatland receives a bona fide offer from a third party purchaser to farm-in or otherwise acquire all or part of its right, title and interest in the Remainder Tenements, the Company must first make an offer on the same terms to Newcrest. The right of first refusal will only apply and be binding on the parties (a) in respect of any area of Tenement E45/4701, during the Farm-In Period and for the term of the Joint Venture Agreement; and (b) in respect of Tenements E45/4512 and E45/4928, for the duration of the Farm-In Period.
Also it's quite clear in there (IMO) that they do intend to toll-treat the ore at Telfer - whether this comes to pass or not is another matter - but see the following pasage.
The current intention of both parties is that, subject to a positive Feasibility Study outcome, the ore from the proposed Havieron Joint Venture will be toll processed at Newcrest's Telfer Gold Mine ("Telfer"), which sits approximately 45km to the west of Havieron, delivering material economic and operational benefits for both parties. These include:
o lower upfront capital costs (no requirement to build a new processing plant);
o ability to leverage all existing infrastructure at Telfer (roads, airport, power, water);
o reduced time to production and first cash flows; and
o potential for a significantly higher net present value for the project than if a new processing plant and supporting infrastructure was required.
ATB - Paddy
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