LONDON (ShareCast) - (Sharecast News) - Greatland Gold responded to press speculation in Australia on Monday, confirming that it was in advanced negotiations to acquire Newmont Corporation's interest in the Havieron gold-copper project and the 100% ownership of the Telfer gold-copper mine.
The AIM-traded firm said the move followed Newmont's February announcement to divest non-core assets, including the properties.

Greatland has a last right of refusal for Newmont's 70% stake in Havieron, positioning it favourably for the acquisition.

The potential deal, reported in the Australian Financial Review, suggested Greatland was seeking to raise AUD 500m (£254.36m) to finance the purchase, with significant backing from existing cornerstone investor Wyloo Consolidated Investments.

Greatland said it had entered into an exclusivity agreement with Newmont to finalise the transaction, which would involve a mix of upfront cash, deferred payments, and equity, although the specific terms remained confidential.

The acquisition's completion remained contingent on a number conditions, including Newmont's ongoing remediation of Telfer's tailings storage facility and approval from Greatland's shareholders, as the transaction would be classified as a reverse takeover under the AIM rules.

As a result, trading in Greatland's shares had been temporarily suspended pending the publication of the necessary documents for re-admission to AIM.

Greatland said that while negotiations were progressing, there could be no guarantee that the deal would be finalised.

The company said it would update shareholders on any significant developments.

At 0900 BST, shares in Greatland Gold were up 3.05% at 7.1p.

Reporting by Josh White for Sharecast.com.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE