Greatland Gold PLC (AIM:GGP, OTC:GRLGF) shares rose some 13% in Friday's dealing as it detailed plans to add a listing on the ASX as the rapidly growing gold miner continues to build in stature.
Significantly, alongside the dual-listing process, Greatland is going to execute a capital consolidation and effectively create a new business structure.
A new entity, called Greatland Resources, is to be created. This will be an Australian-incorporated parent company – under which a Greatland Gold subsidiary and other subsidiaries are expected to sit.
Shareholders are set to receive one new Greatland Resources share for every 20 Greatland Gold shares they own.
Greatland’s three largest shareholders - Newmont, Wyloo, and Tembo Capital – collectively owning around 35% of the share capital, have undertaken to back the restructuring proposal.
The rest of Greatland’s shareholder base, including a substantial cohort of retail holders, will be asked to vote of the restricting and the dual-listing at an EGM on 12 May – ahead of an anticipated ASX listing date in June.
"We are delighted to have formally begun the process today for our listing on the ASX,” Greatland managing director Shaun Day said.
Day highlighted that Greatland was ‘immediately transformed’ in December by its acquisition of Telfer and its consolidated ownership of the Havieron project, with the company becoming a leading Australian gold and copper producer.
“An excellent time”
“We enjoyed significant Australian institutional investor support for our equity raising to fund the acquisition, and Greatland Gold continues to see strong engagement and interest from the Australian market,” Day added.
Now is an excellent time for the reorganisation and the ASX listing, which he described as ‘the world's premier stock exchange for metals and mining companies.’
The move is expected to enhance Greatland’s capital markets profile, facilitate increased research coverage, and boost institutional ownership, according to Day, who also anticipates improved liquidity in the company’s shares.
“While we see the ASX listing as important in supporting the continued growth of long-term shareholder value, we remain committed to the AIM market and shareholders will continue to be able to trade Greatland Resources shares on AIM,” Day added.
In London, Greatland shares climbed 13% changing hands at 13.6p, which values the company at just under £1.8 billion.