By Jaime Llinares Taboada

Shares in Greatland Gold PLC rose Thursday after its Havieron gold project in Australia was estimated a significantly higher value.

The mining company said the option price at which partner Newcrest Mining Ltd. can acquire an additional 5% interest in Havieron has been determined at $60 million. This price tag represents around a $1 billion increase in the inferred value of Havieron when compared with a pre-feasibility study issued in October 2021, Greatland said.

This uplift reflects a 53% increase in the project's mineral resource estimate, as published in March.

Newcrest now has 30 business days to exercise the option to acquire the 5% stake, which would result in Newcrest owning 75% of Havieron and Greatland retaining a 25% interest.

Greatland said it will use the money to repay in full its $50 million debt facility.

Shares in Greatland at 1014 GMT were up 14% at 11.50 pence.

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

(END) Dow Jones Newswires

July 21, 2022 06:38 ET (10:38 GMT)

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