Member Info for sandgrounded

MF11, thanks and that and would be great if it is affordable.

My point of view is that Paying back the debt, whether it be 30% or 100% of Havieron is not the problem. It is the equity needed to satisfy the banks lending criteria. With a share price of 7p, we would need to issue billions more shares to cover that and even more to actually buy the 70% from Newmont if it became available.

I would love it if we could afford it, but the sp needs to rise considerably if we are to be successful. The accretive value of owning 100% against the issuing of billions of shares, is the question we need to look at.

As I said, it is only my point of view, but Shaun needs to be really honest about the costs involved, so that people can make up their own minds.

Have as good one. Good night.

I would just add that if Wyloo was to be that white knight, then assuming they exercise their warrants in GGP, they would hold almost 15% of the company and would certainly see an additional benefit of a rise in our share price.

SocialistB, thanks again for coming back to me.

The figures I quoted were pro-rata, the terms we obtained when getting finance for our 30%. That is A$120 million put up as our stake and with the banks contributing A$220 million by way of a 7 year loan.

I was trying to make the point that going it alone would be too expensive.

The case law that I stated had the junior j/v partner buying the majority stake of a mining lease for x millions (provided by the third party) and then selling it to that third party for x millions plus 50 million.

If we had a white knight to do the same and put up the money to buy Telfer/Havieron, then sell it to them for a percentage of the Havieron mine, ( as our fee), you are of course correct. We would only have to find that extra percentage costs which would drastically cut the figures I quoted.

Shaun has recently negotiated a very good deal with Rio for a 51% share of that particular j/v and it possibly shows that he likes to have a controlling interest in whatever he takes on. Hence my suggestion in obtaining the extra 21% of Havieron as a fee. I admit that is a big chunk of Havieron as a fee, but even an extra 10% would be great.

Apologies for my late reply. I was out bowling earlier and just picked up the iPad to catch up.

Maybe someone will ask Shaun when he comes over.

It will be interesting to see if a DTM is made before the New Year. A decision should be made within 30 days of the DFS, so will that come before the takeover is complete?

The takeover conditions stated something along the lines of Newcrest should not hold up work at Havieron, but who has the say on DTM, if the DFS is published on the next month or so, before the j/v is complete?

Only my conjecture. Don’t wAnt to upset anyone lol!

Culpepper, I don’t know the answer to that one.

All I know is what I read on one particular case, which someone posted ( apologies can’t remember who).

I would ask whether Newmont would want to sell part of it to Wyloo though. Would that make a competitor a little bit stronger opposition in the future?

Just playing Devils Advocate there!

Or the MM’s think they know the new rights issue price!!!

SocialistB, thanks for your post @14.23.

You may be correct in thinking we may not get another chance if we pass up an opportunity to buy the 70% of Havieron and Telfer. ( if offered)

Unfortunately that offer may come too early for many of us. With the sp so low, dilution would be horrendous even if we took a lower percentage of equity and a higher percentage of debt.

In a previous RNS, I referred to this morning, we needed A$120 million in equity for A$220 million debt. That was for our 30% share of costs to get Havieron to production. So on the same ratio we would need A$280 million in equity for another A$500 million ( or so) in debt. These are just for getting Havieron into production.

Add on buying the 70% share of Havieron, we dont own and that could well cost another $840 million.

( I have used the 5% figure from last year of $60 million dollars to get the figure of $840 million. Unfortunately I cannot remember if the 60 million was Us or Australian dollars)

I can’t see a decision to mine coming before September when the Newcrest/Newmont buyout nears completion as the implications on that vote could allow us the opportunity to buy Newmont out at fair market value if they don’t want to proceed.

So you can see, I don’t think we can afford it.

The one chance we could have is something someone pointed to a few months ago,regarding case law on right of first refusal, I think.

In that case the junior partner of a j/v had right of first refusal to purchase the other majority share. Using money borrowed from another mining giant, they bought the majority stake and then sold it to that Mining giant for a $50 million ‘fee’.

Could we see Wyloo being our benefactor when purchasing it and then selling them 49% back to them for the same price?

That would leave us with a 51% majority share, which obviously we would need to raise capital on to cover costs to production. By that time though, I think we could all agree the sp would be multiples of todays sp.

Would be nice to get some news on those drills Magnum. Will they publish before or after the planned ASX listing?

Shaun has done a lot of good things. The 5% retained and the securing of funding for Havieron,. ( Even though we had to pay a price to get our security for the loan - 8.2p)

I just think we are not ready to accelerate at this time.

I am sure Shaun said somewhere that any share issue would have to be for an accretive purchase or something similar.

A potential share issue at these prices, I doubt would be accretive.

Build the value of the company first, then develop from a position of strength, not weakness in the sp.

Most would have heard the saying, “ Better to arrive late, than not at all” and I believe that could be said of GGP!

I know Shaun is a good man, but I fear he is trying to make us into a multi- billion dollar company too quickly and should take his foot off the accelerator, to allow us to develop what we have.

The risk of allowing the Australian institutions to partake in a potential fund raise at these prices, would mean billions more shares in the company and massive debt if we were to try and purchase the rest of Havieron and Telfer.

I believe that would leave us open to a potential bid at a very low price.

So I again say to Shaun and the board. If you want to go ahead with the ASX li#ting, then you need to come out and say there will definitely be no placing at that time.

I have re worded part of the previous text and realised our fund raising would have 5o be higher than first stated as I used pound currency instead of Australian dollars.

j just trying to do some sums here and apologies if I have rounded the figures too much.

We were told by SD that we needed to raise £60 million (Aus $100 million?) to obtain the bank funding of A$220 million. That would cover our share of costs for 30% of Havieron.

Now imagine trying to buy the 70% from Newmont. Costs for production, excluding the purchase price would need approx A$730 million, (pro rata), but we would need to put up ( find) another A$ 330 million if we could get the same terms and conditions as before for the loan.

Now let’s say we need another A$ 1 billion to buy Havieron and Telfer . A figure reported in financial articles when the Newcrest/ Newmont jv was first reported.

I think we all can see how massive the dilution would need to be with the sp at 6.5p.

I have said it before and I will say it again. Let’s learn to walk before we run.

https://uk.advfn.com/stock-market/london/greatland-gold-GGP/share-news/Greatland-Gold-PLC-Funding-secured-for-development/8903397

Just trying to some sums here and apologies if I have rounded the figures too much.

We were told by SD that we needed to raise £60 million (Aus $100 million?) to obtain the bank funding of A$220 million. That would cover our share of costs for 30% of Havieron.

Now imagine trying to buy the 70% from Newmont. Costs excluding the purchase price would need approx A$730 million, but we would need to put up ( find) another A$ 170 million if we could get the same terms @nd conditions as before.

Now let’s say we need another A$ 1 billion to buy Havieron and Telfer . A figure reported in financial articles when the Newcrest/ Newmont jv was first reported.

I think we all can see how massive the dilution would need to be with the sp at 6.5p.

I have said it before and I will say it again. Let’s learn to walk before we run.

https://uk.advfn.com/stock-market/london/greatland-gold-GGP/share-news/Greatland-Gold-PLC-Funding-secured-for-development/89033970

Shareholders seriously need to think about this ASX listing and to consider if it is worth it with the sp do low.

I will be voting against it because I don’t know whether Shaun Day will try and raise capital to allow the Australian Institutions to get on board.

We don’t need these institutions at this time. Let them bide their time. If the company is as good as we think, they can always come on board later at a sensible price.

I urge all shareholders to consider their options.

It would be great for the Institutions to buy in over there, but that doesn’t mean we have to do a share issue at this price.

Join the ASX, but let the institutions buy in through the market.

We are funded for our 30% share of Havieron. Let’s get that up and running and use any profits for exploration on our own leases and the Rio j/v.

We need to walk before we run as I now believe that the ASX listing will come with a fund raise and the institutions and Wyloo know it , resulting in pressure on the sp.

Shaun, assure us that no fund raising will take place and you will see the sp rise.

I think I would rather have 30% of Havieron, with the bank loans secured, rather than be diluted to h*ll with institutions being given shares at a ridiculous price, to enable us to bid for Telfer and the rest of Havieron.

Have the ASX listing, but let the I situgions buy the shares from the Four Diggers, who will be flooding the market with a large amount of shares from July.

We don’t need the other part of Havieron if it comes at too high a price.

Have to agree with you Marty. I am beginning g to wonder if Wyloo is behind all this.

I have decided to vote against any proposals from the board at this present time, unless we see some commitment to improving the sp. Put their hands in their pockets or something else. This sp deterioration has to stop.

Hope it’s not around the 29th!

Having read it again, I’m not even sure it relates to Havieron, only the surrounding tenements.