Greatland Gold Acquires Telfer Mine in $714 Million Deal Amid Gold Price Surge
UK-based mining explorer Greatland Gold has acquired the Telfer gold mine and the nearby Havieron gold and copper prospect in Western Australia’s Great Sandy Desert for $714 million, capitalizing on rising gold prices. The deal was struck with Newmont Corporation, the world’s largest gold producer, which decided to offload the assets after its $26.2 billion merger with Newcrest last year.
The acquisition fulfills a long-standing goal for Greatland, which has sought full ownership of Havieron for the past three years. Previously, the company owned a 30% stake in the Havieron field, having discovered the deposit in 2018 and partnered with Newmont in a joint venture to develop the site.
Greatland will now take full ownership of Havieron and the Telfer mine, a fly-in fly-out operation that produces gold, copper, and silver. To fund the acquisition, Greatland will undergo a capital-raising and equity placement, though Newmont will retain about 20% of Greatland under the terms of the deal.
Mark Barnaba, chairman of Greatland Gold, hailed the acquisition as a long-awaited opportunity: "The consolidation of 100% ownership of Havieron and acquisition of Telfer is the opportunity which Greatland has been coveting for the past three years."
Telfer was part of Newcrest’s portfolio before the Australian miner was absorbed by Colorado-based Newmont. Shortly after acquiring Newcrest, Newmont announced it would sell non-core mines and projects worldwide to raise $3.05 billion. Despite selling Telfer, Newmont retains ownership of the Boddington gold mine in Western Australia and the Tanami mine in the Northern Territory.
Greatland’s acquisition includes a payment of $150 million that is contingent upon gold prices hitting a certain threshold and Havieron reaching commercial production. To support the development of Havieron, Greatland has secured a non-binding debt letter of support from tier-one lenders ANZ, HSBC, and ING Bank for $750 million. This, combined with capital from equity raising and cash flow from Telfer, will provide the necessary funding for Havieron’s development.
Greatland Gold aims to integrate Telfer and Havieron into a unified mining and processing operation. “The operating strategy for the enlarged group is to renew and develop an integrated Telfer-Havieron mining and processing operation, to create a generational Australian gold-copper mining complex,” the company said.
Gold prices have surged recently, reaching over $2,500 (AUD 3,758) per ounce in August, driven by a strong US dollar, high interest rates, inflation, geopolitical instability, and central bank buying, particularly from China. This price increase has boosted the value of Australia’s gold mining sector, with Northern Star Resources' shares rising by 32% and Evolution Mining up by 7% over the past year.
