RE: Bamps15 Sep 2021 22:36
Extract from the Rns 30/11/20….
Summary of Agreements
-- Building on recent success at Havieron: Newcrest and Greatland have entered into a series of new agreements in relation to Havieron, most notably, the Havieron Joint Venture Agreement and the Havieron Loan Agreement. These new agreements are expected to deliver the following primary benefits to Greatland :
o The agreements provide a formal framework for the arrangements between the two parties beyond the existing Farm-in Agreement, and facilitate the expansion of exploration activities at Havieron and the acceleration of early works, including the construction of a box-cut and decline.
o The Havieron Loan Agreement secures funding for Greatland (approximately US$50m), which, together with Newcrest's existing sole funding commitments under the Farm-in Agreement, is expected to fund Greatland's share of joint venture costs (based on current forecasts) up to the completion of Feasibility Study.
-- Havieron Joint Venture Agreement ("Havieron Joint Venture" or "Havieron JV"): A fully-termed Joint Venture Agreement between Newcrest and Greatland to govern the joint venture ownership and operations of the Havieron project .
o In order to support the planned acceleration of the construction of a box-cut and decline and a faster rate and scope of planned spending on exploration activities, the parties have agreed to fund these activities in proportion to their post-Farm-in period interests (70% Newcrest; 30% Greatland).
o In order to incorporate ongoing growth drilling activities, the parties have agreed a structure that allows Newcrest to deliver the Pre-Feasibility Study in Stage 4.
o Consequently, Newcrest has now met the Stage 3 expenditure requirements and is entitled to earn an additional 20% interest in the Havieron Joint Venture for an overall 60% interest (40% Greatland).
o Newcrest's total farm-in commitment remains to incur expenditure of US$65m and deliver a Pre-Feasibility Study to earn 70%.
-- Havieron Loan Agreement: Provides for a loan facility of US$50m from Newcrest to Greatland, at an interest rate of LIBOR + 8%, which is expected (based on current forecasts) to fund Greatland's share of joint venture costs, including Early Works and Growth Drilling, up to the completion of the Feasibility Study.
-- New exploration joint venture ("Juri Joint Venture" or "Juri JV"): In addition to the Havieron-related agreements, Newcrest and Greatland have entered into a farm-in and joint venture agreement to accelerate exploration at Greatland's Black Hills and Paterson Range East licences:
o Newcrest immediately receives a 25% interest in both licences and has the right to earn up to a 75% interest in the licences by spending up to A$20m as part of a two-stage Farm-in over five years, including an A$3m minimum commitment for Stage 1.
o Greatland has previously identified a number of high-priority targets across the two licences, many of which display simila
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