Last checked at 12 Mar 2019 13:03
Primorus Investments PLC
("Primorus" or the "Company")
Update on Investment in Greatland Gold PLC
Primorus Investments plc (AIM: PRIM, NEX: PRIM) is pleased to advise shareholders that its investee company Greatland Gold PLC ("Greatland"; AIM: GGP) has today announced a US$65m, (GBP£50m) farm-in agreement ("the Agreement") with Australia's leading gold producer and one of the world's largest gold mining companies, Newcrest Mining Limited ("Newcrest"; ASX: NCM).
Primorus owns 37m shares in Greatland, representing approximately 1.15% of its issued share capital in Greatland, purchased at weighted average price of 1.71p per share.
The key terms of the Agreement as set out in the announcement released by Greatland this morning stipulate that Newcrest has the right to acquire up to a 70% interest in 12 blocks within E45/4701 that cover the Havieron target by spending up to US$65m (roughly £50m or AUD$90m) and completing a series of exploration and development milestones in a four-stage Farm-in over six years.
Full details of today's announcement can be reviewed on the Greatland RNS newsfeed available on the London Stock Exchange website and on the Greatland website at https://greatlandgold.com/.
Alastair Clayton, Executive Director, commented on the Agreement announced this morning: "We believe this US$65m farm-in agreement with Newcrest is an incredible result for Greatland and by default Primorus shareholders. Our investment mandate is to identify, risk assess and then invest early in opportunities where others may seek to wait. We believe today's announcement is a vindication of that strategy and will prove to be transformational for Greatland and value accretive for Primorus."
"We note the deal includes the contemplation of using Newcrest's existing Telfer Mine as a toll-treat facility to support any future mining opportunities at Havieron, potentially reducing any future large capital expenditure requirements and the many years needed to permit and build a commercial mine.
"In short this farm-in has, in my opinion, the potential to open up the entire Havieron region to commercial mining in a time frame and cost that stand-alone operations could never compete with."
He added: "I am immensely pleased that we have been to provide our shareholders with exposure to what we believe is an excellent opportunity. We will continue to hold our shares in Greatland and, funds permitting, add to our position in the future as we believe they remain hugely undervalued".
For further information, please contact:
Primorus Investments plc: +44 (0) 20 7440 0640
Alastair Clayton
Nominated Adviser: +44 (0) 20 7213 0880
Cairn Financial Advisers LLP
James Caithie / Sandy Jamieson
Broker: +44 (0) 20 3621 4120
Turner & Pope Investments
Andy Thacker