Greatland Gold (LON: GGP) (OTCPK: GRLGF) has a possibly slightly unfair reputation for making a lot of announcements to the stock market but not actually seeming to do much else. The reason there's the “slightly” in there is because there is indeed some truth in there. For Greatland Gold does indeed make lots of information releases to the stock exchange and not much does seem to happen. As here - a deal on the financing of a mine is usually a big, big, deal (sorry) but this seems to be greeted with little more than a Pfft. The reason being that the deal announced is worth little more than a Pfft, to be fair about it.
What is announced is that the consortium of banks willing to finance GGP at the next stage is willing to offer slightly better terms for that financing of that next stage. The effects on Greatland's finances are and will be marginal. Thus the marginal response to the announcement. In more detail: “The update saves the Company from incurring the commitment and other fees associated with the proposed A$220 million debt facilities until the Havieron Feasibility Study is finalised. The Letter of Support in respect of the proposed A$220 million debt confirms the Banking Syndicate remains fully supportive while the Havieron Feasibility Study progresses with several value enhancing options underway to maximise value and de-risk the project”
Greatland Gold share price from London Stock Exchange
That quote contains both the reason why there's not more movement today and also why there's not much movement in GGP more generally. This financing deal is indeed just slightly better terms on something we already knew was in place. Well, OK, that's nice to know but it's not - as we can see - greatly price changing information.
The other issue though. If Greatland has such a lovely gold mine at Havieron why isn't the price much higher or soaring so? Because Newcrest is still working on whether there really is a great gold mine at Havieron, that's why. That Feasibility Study is the defining document. That's the one that says - yep there's a goldmine here! Or, of course, there ain't! - and is what then triggers all the work to actually finance and build the mine.
Everything before that definitive report is simply the gathering of information to support the decision that will be in the feasibility study. Which is why Greatland doesn't move all that much on other information releases - we're all awaiting the big and important one.