RE: Anyone got access to this paid for article?20 Apr 2025 18:29
The arbitration victory was crucial as Mr Day worked away on two separate fronts through 2022 – building the relationship with Wyloo and adding board firepower with the help of Mr Barnaba.
Valuation and due diligence
Eventually, on September 12 that year, Greatland unveiled Mr Barnaba as its new chairman and Ms Gaines and Mr Wilson as non-executive directors. In a separate announcement on the same day, Greatland said it had secured $220m from banks and an equity investment of up to $120m from Wyloo to fund its share of developing Havieron.
Fast forward to 2024 and Wyloo agreed to underwrite the equity raise that enabled Greatland to acquire Telfer-Havieron and complete the Day vision.
Instead of taking a fee, Wyloo – which did a deep technical dive into the potential of Telfer-Havieron – took options over the Newmont shareholding. It has a call option to buy half of Newmont’s 20.4 per cent stake at 7.2 pence plus warrants for other shares at 10 pence that could take its shareholding to nearly 21 per cent.
Wyloo also has right of first refusal should Newmont look to sell the remainder of its stake.
One of the question marks over the Telfer mine ahead of the sale was the condition of two tailing dams hit with prohibition notices by WA safety authorities.
Newmont voluntarily stopped using the dam that was still active and worked hard to bring it up to its global standard.
During the remedial work and dam upgrade, Newmont kept mining but stopped processing. That left 30 million tonnes of ore at surface – representing more than 450,000 ounces of gold and more than 15,000 tonnes of copper sitting there at zero mining risk or cost to Greatland.
Subtract recovery and processing costs and the ore left at surface still adds up to a potential $1bn profit for Greatland.
Mr Day said Greatland did an extended period of due diligence at Telfer that allowed it to hit the ground running.
The deal was completed at about 4pm in WA on December 4 and within 15 minutes new owner Greatland fired up the second of two processing trains at Telfer.
“I think that that in itself was a remarkable point in the transaction, and a real statement to the team at Telfer about our intent,” Mr Day said.
“Our immediate focus is to establish ourselves as a consistent, reliable, long-term producer of low-cost gold. If we’re able to do that, we give ourselves the best opportunity to drive value on the ASX, and the ASX is clearly the best resources exchange on the.....end
Sign In
Follow the stocks
