RNS Farm IN Agreement Haverion12 Mar 2019 07:05
Farm-in agreement includes Joint Venture and Tolling Principles which reflect the intention of both parties that, subject to a successful exploration program and positive Feasibility Study outcome, ore from the proposed Havieron Joint Venture will be toll processed at Newcrest's Telfer Gold Mine
Additionally, during the farm-in period, Newcrest will have a first right of refusal over the remainder of Greatland's Paterson project (Black Hills, Paterson Range East and remaining areas of Havieron licence)
Greatland Gold plc (AIM:GGP), the precious and base metals exploration and development company, is pleased to announce that the Company, and its wholly-owned subsidiary Greatland Pty Ltd, have signed a farm-in agreement with Newcrest Operations Limited ("Newcrest"), a wholly owned subsidiary of Newcrest Mining Limited (ASX:NCM), Australia's leading gold producer and one of the world's largest gold mining companies, to explore and develop Greatland's Havieron gold-copper project in the Paterson region of Western Australia (the "Farm-In Agreement").
Highlights of the Farm-In Agreement
-- Newcrest has the right to acquire up to a 70% interest in 12 blocks within E45/4701 that cover the Havieron target (the "Tenement Blocks") by spending up to US$65m (roughly GBP50m or AUD$90m) and completing a series of exploration and development milestones in a four-stage Farm-in over six years.
-- After meeting the milestones in the four-stage Farm-in (set out below), Newcrest has the option to acquire an additional 5% interest at fair market value taking Newcrest's interest in the Farm-in to 75%.
-- Newcrest will have the right but not the obligation to acquire up to an initial 70% Farm-in Interest in the Tenement Blocks in accordance with the following four-stage farm-in procedure:
o Stage 1: Newcrest incurs US$10 million in expenditure (inclusive of the Minimum Commitment of US$5 million) in relation to the Tenement Blocks (the "Stage 1 Commitment") within a period of 12 months;
o Stage 2: If Newcrest incurs an additional US$10 million in expenditure in relation to the Tenement Blocks (the "Stage 2 Commitment") within a period of 12 months from the date following satisfaction of the Stage 1 Commitment, Newcrest will earn a 40% Farm-in interest;
o Stage 3: If Newcrest incurs an additional US$25 million in expenditure in relation to the Tenement Blocks and delivers a Pre-Feasibility Study for a project on the Tenement Blocks (the "Stage 3 Commitment") within a period of 24 months from the date following satisfaction of the Stage 2 Commitment, Newcrest will earn an additional 20% Farm-in Interest (cumulative 60% Farm-in interest);
o Stage 4: If Newcrest completes and delivers, or incurs no less than US$20 million in expenditure toward the carrying out of, a Feasibility Study for a project on the Tenement Blocks (the "Stage 4 Commitment") within a period of 24 months from the date following satisfaction of the Stage 3 Commitment, Newcrest will ea
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