Greatland Gold PLC announced on Wednesday it has carried out a 5.2 million share placement to fund its acquisition of the Havieron gold-copper project, the Telfer gold-copper mine and other related assets in the region.

The Western Australia-focused metals exploration and development company conditionally placed 5.2 million shares at 4.80 pence per share for a total oversubscribed placing of approximately £248.6 million. The price was a 32% discount to Tuesday’s closing price of 7.10p.

Shares in Greatland Gold fell 27% to 5.20p each in London on Wednesday afternoon.

Greatland has entered into an agreement with Newmont Corp subsidiaries to acquire a 70% ownership interest in the Havieron project, thus consolidating Greatland’s ownership to 100%. Greatland will also acquire 100% ownership of the Telfer mine and other related interests in assets in the Paterson region.

The company will acquire these assets for a total consideration and debt repayment of up to $475 million in aggregate. The proceeds from the placement will finance $155.1 million of this amount, $52.4 million of the outstanding balance on the Havieron joint venture loan to Newmont, and A$7.1 million of an outstanding balance under an existing working capital facility.

Managing Director Shaun Day said: ‘We are delighted to have successfully closed the placing, which was strongly supported and oversubscribed. The placing proceeds will fully fund the cash consideration for the acquisition of 100% ownership of Havieron and Telfer, to make Greatland a material producer of gold and copper.

‘I would like to extend a warm welcome to all investors who have participated in the placing, both existing and new shareholders of Greatland. We appreciate the support and look forward to the compelling opportunity that the acquisition affords us to create value for all Greatland shareholders.’

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