PERTH (miningweekly.com) – Gold miner Newcrest has firmed up plans to hunt for gold in New South Wales, replacing a previous heads of agreement with ASX-listed Alice Queen, with a formal option and farm-in agreement.
Subject to conditions, Newcrest will have the option to obtain the right to an interest in the Mendooran project tenements by spending some A$2-million on exploration within the first two years of the agreement.
Subject to meeting the minimum expenditure, Newcrest can earn the right to a 51% interest in the project by spending a further A$3-million over the next two years.
Subject to completing the first earn-in, Newcrest will then have the right to earn a further 29% interest in the project by spending a further A$5-million during the 60 months immediately following the Stage 1 earn-in.
The agreement is conditional upon the partners agreeing on the terms and scope of a minimum commitment.