The Greatland Gold plc (LON: GGP) share price rose 6.5% after issuing an update about the pending takeover of its joint venture partner on the Havieron project, Newcrest Mining Limited, which Newmont Corporation is acquiring. Newcrest owns 70% of Havieron and is the project operator, while Greatland owns the remaining 30%.1
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Today’s update was mainly focused on the valuation allocated to Havieron by Grant Samuel & Associates Pty Ltd, which used Newcrest's August 2022 Havieron Mineral Resource Estimate (MRE), which misses out on the progress made since the drilling campaign that ended in November 2021, on which the August 2022 MRE is based.
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Newcrest is conducting a feasibility study of Havieron, assessing value-enhancing options to maximise value and de-risk the project. The feasibility study will, therefore, be an up-to-date, comprehensive and optimised assessment of Havieron, with an updated MRE being released based on the same.
Newmont expects to complete the acquisition of Newcrest by November 2023, after which Newmont will become Greatland Gold’s joint venture partner on the Havieron project. GGP is looking forward to working seamlessly with Newmont to optimise the development of Havieron, finalise the feasibility study and arrive at the decision to mine.
Earlier today, Newrest released a scheme of arrangement circular for its shareholders calling for a general meeting scheduled for 13 October 2023 to vote on the proposed takeover. The circular contained the valuation for Havieron discussed above.
Reading deeper into the report, we find that Havieron was valued relative to Newcrest’s interest in Telfer, which it owns 100%. Therefore, Havieron was not separately valued, as would typically be the case. The two projects were valued in aggregate despite Newcrest owning 70% of Havieron.
The assessment by Grant Samuel & Associates Pty Ltd was independent of Newcrest. It was conducted to assess whether the transaction was in the best interests of Newcrest shareholders. The assessment included a valuation for each material project in the Newcrest portfolio, including Havieron.
The Greatland Gold (GGP) share price.
The Greatland Gold (GGP) share price rose 6.5% to trade at 6.21p, from Thursday’s closing price of 5.95p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.