HLA14 Jan 2022 00:05
Havieron Loan Agreement
· In order to support the expanded scope and pace of activities at Havieron, Newcrest has agreed to provide funding of up to US$50m to Greatland via two US Dollar loan facilities, Facility A and Facility B, at an interest rate of LIBOR+8%. The Loan Agreement is expected (based on current forecasts) to fund Greatland's share of joint venture costs, including Early Works and Growth Drilling, up to the completion of the Feasibility Study.
o "Facility A": a loan of up to US$20m, or a greater amount if provided by Newcrest, for Greatland's 30% share of Early Works and Growth Drilling prior to the completion of the Pre-Feasibility Study. Greatland's obligation to contribute to Early Works Expenditure and Growth Drilling Expenditure, in aggregate, will be capped at the amount of the Facility A Commitment.
o "Facility B": a loan of up to US$30m for Greatland's share of joint venture expenditure, post the completion of the Pre-Feasibility Study, but prior to the completion of the Feasibility Study.
o Scheduled quarterly repayments of the loan(s) will occur once production commences at Havieron with repayments comprising 80% of quarterly "Net Proceeds" (revenue from sale of Greatland's share of JV product less statutory royalties, royalties payable under the JV ILUA, all charges paid by Greatland under the Tolling Agreement with Newcrest, and Greatland's share of Joint Venture operating expenditure for that quarter).
o Greatland may prepay all or part of the total outstanding loan balance(s) without premium or penalty at any time.
o If Newcrest exercises its option to acquire the Additional Farm-In Interest, then the purchase price payable by Newcrest to acquire the Additional Farm-in Interest will be set-off against (by way of prepayment of) the total outstanding loan balance(s) at that time.
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