GGPChat

Says it all...
Shorts are fucked.
Boom Basically
20p incoming

This sounds like a great start to the week! thanks to all on here for my ongoing education.
GLA

https://www.afr.com/companies/mining/fo ... 912-p5bhec

Billionaire Andrew Forrest has inserted himself into another potential takeover stoush by becoming the biggest shareholder in the explorer that is being closely watched by Australia’s biggest gold miner Newcrest Mining.

Dr Forrest’s private company Wyloo Metals has agreed to spend $60 million buying 8.6 per cent of London-listed Greatland Gold, which holds the key to the future of Newcrest’s Telfer mine after discovering the exciting Havieron gold and copper deposit in Western Australia’s Paterson Province.

Greatland Gold boss Shaun Day (back right) with new board members (from left) Jimmy Wilson, Elizabeth Gaines and Mark Barnaba.

The Wyloo investment was the highlight of a $340 million injection of funds for Greatland and came as former Fortescue chief Elizabeth Gaines, Reserve Bank director Mark Barnaba and former BHP executive Jimmy Wilson, joined Greatland’s board.

Greatland’s discovery of Havieron in 2018 effectively threw a lifeline to Newcrest’s Telfer mine, which had struggled for years under high costs and deteriorating gold grades and was expected to close in 2023.

Havieron is just 45 kilometres from Telfer and Newcrest has spent $US65 million ($94.4 million) over the past four years acquiring 70 per cent of the project under a plan to process it through the existing infrastructure at Telfer.


Greatland has other prospective targets in the region around Telfer, making it a logical acquisition target for Newcrest, and the takeover tensions were on show in August when Newcrest declined to exercise an option to pay $US60 million for a further 5 per cent of Havieron.

Cashed up Newcrest could easily afford the extra 5 per cent, but the $US60 million price tag was set by an independent valuer and loomed as a major price discovery event for Greatland had Newcrest agreed to pay it.

Wyloo agreed to pay 8.2 pence for each Greatland share; the stock was below that level for the entire period between August 30 and September 8.

Greatland shares have averaged 10.22 pence per share since July 1 and 13.45 pence per share over the past 12 months.

Greatland shareholders will need to give approval for the investment to go ahead, with the vote expected within a month.

Wyloo’s spend on Greatland may yet rise to $120 million after it received warrants granting it the option to buy more shares for 10 pence each if certain milestones are achieved.

The Wyloo investment coincided with Greatland securing a $220 million loan from ANZ, ING and HSBC on a seven-year term.

Construction of Havieron was expected to cost $529 million, with Newcrest liable for 70 per cent of that cost and Greatland responsible for 30 per cent.

Greatland chief Shaun Day said the cumulative $340 million funds injection had removed any risk that Greatland would struggle to fund its share of construction costs.

“Completing the debt facilities and Wyloo investment will enable Greatland to be fully funded for its share of costs in developing the Havieron project into first production and potential free cash flow,” he said.

Wyloo chief Luca Giacovazzi said Havieron was one of the most exciting discoveries in the Paterson province and Wyloo was also keen to get exposure to Greatland’s other targets in the region.
Unlikely to be welcomed by Newcrest

Wyloo’s likely emergence as the biggest shareholder in Greatland is unlikely to be welcomed by Newcrest, given Wyloo has a habit of complicating big miners’ attempts to acquire juniors.

Wyloo’s strong bidding for Canadian nickel explorer Noront last year eventually convinced BHP to give up its long pursuit of the junior.

I like the section at the bottom about Wyloo throwing spanners into the works of Majors trying to buy out juniors.

I want to ride the Greatland pony in to production on onwards for the next 20 years.

Oilmonkey, there is actually a last bit on the article that didn't copy that expands on that: ->

Wyloo was also a stone in the shoe of IGO over the past year as it sought to acquire nickel miner Western Areas.

Wyloo conspicuously bought Western Areas shares on market at prices that were higher than the IGO offer price, fuelling expectations of a rival bid and ultimately contributing to IGO’s decision to raise its offer by 15 per cent.

Before it agreed to support IGO’s takeover bid for Western Areas, Wyloo struck a deal with IGO that will give Wyloo a stake in any future nickel refinery that IGO builds in Australia.

Wyloo last month loaned $150 million to Australian rare earths mining aspirant Hastings Technology Metals and also toyed with the idea of taking a strategic stake in sold-down gold miner Regis Resources.

For consideration- Hydro, do you think it’s time to nominate Pi as non-executive directors to the main board to represent Pi’s interest. There may be an EGM shortly when this could be added to the agenda.
What troubles me as a Pi is that we will soon be a minority and blindly on the outside, to get the ball rolling someone of similar standing to Paddy, Bamps and your self who from valuable research seem to have a good handle on the changes, After all when the extra shares are registered it may be too late to have a Pi representative on the management board.
Happy to be shot down if this is considered by Pi’s not to be unnecessary, just feel it is worth mentioning as the medium-term interests of the enlarged board may not be truly aligned with Pi’s. Would rather question this now and be happy than to follow blindly.
SD has pulled a blinder and no doubt the majority of us are very happy with the progress but unfortunately can’t see the share price moving any time soon still leaving Pi’s vulnerable to the tricks of a low-cost takeover.

There could also be an effective plan to get rid of the institution shorting the share price.

Please do your own research and don’t rely on my anecdotal view.

Patrick

Hello,
Interesting concept. I will discuss with contacts and revert. But to be frank, I’m not aware that’s even possible Patrick.

But it Seems PIs do require a voice, given the misinformation deliberately put out to cause disruption (presumably in an attempt to recover their 10s of millions of shorted shares).

"Greatland Gold shows how holding firm in the face of pressure from the big boys can create significant long-term value

In the London market, only one other company, Solgold, has come close to what Greatland has achieved - making a major discovery and then keeping hold of a significant portion of it as the big money comes in to move it forward into production..........Concurrently, new board members were announced, including as non-executive chairman Mark Barnaba, who is the current deputy chairman of Fortescue Minerals, a A$50bn company......

Greatland has hit the big time, and the big hitters are accordingly coming in to meet it.

Serial small-cap non-executive Alex Borelli, who was chairman, will remain on the board as “London representative.”


Https://www.proactiveinvestors.com/comp ... 92431.html