‘Watershed moment’ as Forrest-backed Greatland seals deal for Telfer in latest gold boom

Greatland Gold has officially closed out its acquisition of Newmont’s Telfer mine in the Pilbara ticking off the latest blockbuster WA transaction in a roaring yellow metal market. The London-listed explorer struck a deal to buy the Telfer mine and processing operations from global gold giant Newmont for over $700 million in cash and shares in September. Newmont had inherited the asset, and 70 per cent of the nearby Havieron copper-gold deposit, as part of its $26 billion takeover of Newcrest Mining last year, and has since been shedding what it deems “non-core” assets from its sprawling global portfolio. Greatland managing director Shaun Day said closing the deal was a watershed moment for the company. “Telfer is an iconic Australian mine that immediately transforms Greatland into a significant producer of gold and copper, with a defined mine plan that is materially de-risked by substantial ore stockpiles, and significant mine life extension prospects,” he said. About 435 Telfer employees — nearly 100 per cent of the workforce — will join Greatland following the deal. A key condition of the transaction had been fixing the embankment of the operation’s two tailings dams, which have caused headaches at the site for nearly 12 months. One still has a prohibition notice attached. Greatland has waived several conditions to get the deal over the line before the end of the year including the transfer of State environmental and water approvals. Greatland has indicated these will be waved through despite a “significant backlog” at the relevant department for water licence transfers. Greatland has also locked in $US100 million ($155m) worth of debt to fund Telfer operations as it starts generating cash. With the transaction completed, Greatland is expected to list on the list on the Australian Securities Exchange in the next six months, setting the scene for a hefty initial public offering amid what has generally been a slow market for new listings. Completion of the deal comes the same week as Northern Star Resources agreed to an all-scrip deal for De Grey Mining’s highly-touted Hemi deposit, also in the Pilbara. The mammoth transaction is worth just shy of $5 billion, and gives NST — which already owns the famed super pit in Kalgoorlie — the keys to Australia’s next major gold mine. Greatland is chaired by WA businessman Mark Barnaba, and former Fortescue chief executive Elizabeth Gaines is deputy chair. Andrew Forrest’s Wyloo Metals will own 8.45 per cent of the business, behind Newmont with 20.41 per cent.