By Jaime Llinares Taboada
Shares in Greatland Gold PLC rose Thursday after its Havieron gold project in Australia was estimated a significantly higher value.
The mining company said the option price at which partner Newcrest Mining Ltd. can acquire an additional 5% interest in Havieron has been determined at $60 million. This price tag represents around a $1 billion increase in the inferred value of Havieron when compared with a pre-feasibility study issued in October 2021, Greatland said.
This uplift reflects a 53% increase in the project's mineral resource estimate, as published in March.
Newcrest now has 30 business days to exercise the option to acquire the 5% stake, which would result in Newcrest owning 75% of Havieron and Greatland retaining a 25% interest.
Greatland said it will use the money to repay in full its $50 million debt facility.
Shares in Greatland at 1014 GMT were up 14% at 11.50 pence.
Write to Jaime Llinares Taboada at email@example.com; @JaimeLlinaresT
(END) Dow Jones Newswires
July 21, 2022 06:38 ET (10:38 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.