Greatland Gold guns for $4.4 billion ASX arrival next week

Australia’s next big gold debutant will make a $4.4 billion splash when it arrives on the ASX this month, surpassing many of its WA mid-tier peers all uplifted by the yellow metal’s thunderous run.

Greatland Gold has locked in commitments to raise $50 million with Australian investors after landing on an offer price of $6.60 a share — a 19.5 per cent premium on the company’s share price the day before its prospectus was lodged.

The agreed rate for a slice of the Pilbara gold miner had been at the top end of the range Greatland had been shooting for, the company told the London Stock Exchange on Monday.

“The exceptional demand received for the Australian offering is testament to the quality and opportunity of Greatland’s Telfer mine and world-class Havieron brownfield development project,” chief executive Shaun Day said.

“The ASX is a natural listing venue for Greatland.”

The London-listed company took control of the famed Telfer gold mine in the Pilbara from behemoth Newmont in December last year, and has since churned out more than 90,000 ounces of gold.

Still retaining its spot as the company’s biggest backer, Newmont will offload $440m worth of Greatland shares — or about half its stake — as part of aJU secondary offer tied in with the listing deal. It was not disclosed who would take on the new shares.

With a $4.4 billion market capitalisation, Greatland will sit among the top end of WA’s mid-tier gold set when it begins trading on the ASX on June 24.

The miner will be level pegging with Capricorn Resources, and ahead of the likes of Regis Resources, Ramelius Resources and Westgold Resources.

As well as gold production, Greatland is also eyeing copper output from the undeveloped Havieron deposit it discovered in WA’s Paterson region.

Greatland also has a farm-in and joint venture arrangement with Rio Tinto’s exploration subsidiary for 1500sqkm of ground south of the two projects.

Gold’s bull run has been spurred by fresh conflict in the Middle East, taking an ounce of the precious metal to $US3415.46 ($5244.95) at 5pm local time on Monday, closing in on touching an all-time high of $US3500 achieved in April.

Brokers Barrenjoey, Canaccord Genuity and Bank of America are acting as joint lead managers. on the listing and raising.