Greatland eyes Newmont’s Telfer mine

The two miners have entered into a binding exclusivity agreement which provides for a period of exclusivity to finalise the potential acquisition.

While the proposed terms of the acquisition remain behind closed doors, Greatland has noted it includes a mix of upfront cash, deferred payments, and equity.

Telfer has been up for grabs since February, when Newmont announced plans to divest six gold mines and two gold projects: Éléonore, Musselwhite and Porcupine in Canada, the Cripple Creek and Victor mine in the US, the Akyem mine in Ghana and the Telfer mine in WA.

Newmont president and chief executive officer Tom Palmer said the mines are being divested as they don’t meet the company’s criteria of Tier-1 assets.

“We have a number of Tier-2 assets that are very good assets, run by very good people, but that don’t make our Tier-1 category,” he said.

Now, it seems Greatland has stepped up to the plat, with cornerstone shareholder Wyloo intending to provide material support for the acquisition if it goes through.

Greatland has indicated that it would like the mine’s tailings dams fixed before the acquisition can be completed.

“Settlement of the potential acquisition is proposed to be conditional on completion by Newmont of ongoing remediation works in respect of the Telfer tailings storage facility,” Greatland said.