PERTH (miningweekly.com) – Gold miner Newcrest Mining has entered into a heads of agreement (HoA) with fellow listed Alice Queen on a propsed farm-in on the Mendooran project, in New South Wales.
Under the HoA, Newcrest will have the right to earn up to an 80% interest in the gold project by spending some A$10-million on exploration.
An initial A$2-million spend will give the company the right to earn an interest in the tenement and, subject to completing the option expenditure, Newcrest will have the right to earn a 51% stake in the project by incurring no less than A$3-million of exploration expenditure over a 24-month period.
Subject to the completion of the Stage 1 earn-in, the gold miner could increase its stake in Mendooran to 80%, by spending no less than A$5-million during the following 60 months.
Under the proposed farm-in agreement, Alice Queen will also agree to grant exclusive rights to Newcrest over the Looking Glass project, also in New South Wales, during the term of the farm-in.