London-based Greatland Gold has today offloaded its Firetower and Warrentinna Tasmanian tenements, following an agreement with Flynn Gold.
In November, Greatland entered into an agreement with Flynn Gold under which Flynn Gold had the option to purchase the company’s Tasmanian tenements. Greatland was paid $100,000 by Flynn Gold in respect of the option which was exercisable no later than 30 June 2023.
Flynn Gold has now exercised the option to purchase the Tasmanian tenements, which will consist of an initial $200,000 in the company’s shares. The purchase also includes deferred payment of $500,000 pending the definition of a mineral resource of at least 500,000 ounces; an additional $500,000 upon issue of a permit to mine; and a one per cent net smelter royalty payable to Greatland for any production from the Tasmanian tenements.
“We are pleased that Flynn Gold has exercised its option to purchase the Firetower and Warrentinna tenements,” Greatland managing director Shaun Day said.
“This transaction provides for Greatland to realise immediate value from these tenements which are outside of our core focus locations while maintaining ongoing exposure to the upside potential of this prospective ground.
“This is a particularly pleasing outcome at a time that Greatland is accelerating its exploration efforts within the Paterson province.”
Greatland Gold is a UK-based miner which its operations in Australia. The company only recently cross-listed on the ASX in a move to enable greater flexibility to pursue growth initiatives such as farm-ins and joint ventures in Australia.
Last year, Wyloo Metals spent $60 million to purchase an 8.6 per cent stake in the UK gold company. The equity funding made Wyloo Greatland Gold’s largest shareholder.
As part of the company’s objective to be listed on the ASX, Greatland is evaluating a corporate reorganisation. This would involve the Greatland Group sitting under a new parent company incorporated in Australia.