Junior gold miner Greatland Gold plc (LON: GGP) has received a funding boost to the tune of up to $120 million from Fortescue Metals Group Limited (ASX: FMG) boss Andrew 'Twiggy' Forrest's private company.
As a result, Twiggy's Wyloo Metals will be the London-listed miner's largest shareholder ahead of its planned ASX float.
Let's take a closer look at the company and its connection with the S&P/ASX 200 Index (ASX: XJO) giant.
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Fortescue boss backs ASX hopeful
Twiggy has invested up to $120 million into Greatland ahead of its planned Australian listing.
That could see the Fortescue boss walk away with a 14.6% stake in the soon-to-be ASX-listed junior miner.
The Aussie billionaire's Wyloo has snapped up around 430 million shares at 8.2 pence (14 cents) apiece, totalling $60 million.
It will also receive warrants to subscribe to approximately 352 million shares at an exercise price of 10 pence (around 17 cents) apiece. If exercised in full, that will provide another $60 million.
And it looks like Australian retail investors won't have to wait long to get in on the action. Greatland Gold recently flagged its intent to float on the ASX within the coming 12 months.
The company has also received commitments for a $220 million debt syndicate with three leading banks, including Australia and New Zealand Banking Group Ltd (ASX: ANZ).
The cash is earmarked to help fund the junior miner's 30% stake in the Havieron copper-gold development project and its exploration in Western Australia's Paterson region. It will see it fully funded through to production and free cash flow.
Commenting on the investment, Wyloo CEO Luca Giacovazzi said:
Havieron is a tier one deposit that continues to grow in scale and quality … The Paterson range is emerging as Western Australia's next prolific mining province, and Greatland has an expansive tenement package.
We are excited to be a part of the development of what we expect will be a low cost, modern mining operation with very high environmental and social standards.
Additionally, two notable Fortescue names have been appointed to the ASX hopeful's board.
Fortescue's deputy chair Mark Barnaba will step up as its chair next year. Meanwhile, former CEO Elizabeth Gaines will take up the role of deputy chair.
