Twiggy Forrest’s privately-owned Wyloo Metals group will get its first taste of a major producing mine and high-quality prospect in Greatland Gold’s anticipated acquisition of the Telfer gold-copper mine in WA, as well as the nearby Havieron prospect, from Newmont for more than A$700 million.
Wyloo is Greatland’s largest shareholder and announced on Wednesday that it would finance up to US$100 million of Greatland’s acquisition costs.
This comes after Newmont agreed to sell the Telfer mine and its 70% stake in the Havieron project to London-listed Greatland Gold in the first major asset sale following Newmont’s acquisition of Newcrest Mining last year.
Newmont will receive up to US$475 million (A$714 million) for the WA mine and Havieron, where Newcrest and Greatland have financed a significant underground development, extending more than 300 metres to reach the main orebody.
The price includes a cash consideration of US$207.5 million, Greatland shares valued at US$167.5 million, and a deferred contingent cash consideration of up to US$100 million.
Greatland, which counts Forrest’s Wyloo Metals among its investors, had been the favourite to acquire these assets due to its 30% stake in the Havieron project, which underpins Telfer’s future.
Newcrest had previously expanded and revamped Telfer to extend its operational life, ensuring the ore processing systems were available for Havieron, located 35 kilometres away. Havieron would not be economically viable without the nearby Telfer mine and its associated production and processing infrastructure.
In its statement, Wyloo said its “investment will support Greatland’s acquisition of the remaining 70% interest in Havieron (consolidating Greatland’s ownership of Havieron to 100%), 100% of Telfer, and other related interests in assets in the region.”
“The consolidation of Havieron and Telfer will enable Greatland to create a world-class mining and processing hub in the emerging Paterson Range province,” said Luca Giacovazzi, CEO of Wyloo.
“We look forward to continuing to support Greatland as it develops the Havieron project and establishes itself as a leading Australian gold producer.”
Wyloo has been a shareholder in Greatland since 2022.
Wyloo stated that Greatland will emerge from the transaction as a multi-project gold and copper company, with material production from the established Telfer mine complemented by a low-cost, long-life growth asset in Havieron.