Newmont spends $10.5m on Ozzie exploration
PERTH (miningweekly.com) – The exploration arm of gold major Newmont Mining Corporation has signed a $10.5-million farm-in agreement with Australian junior Hammer Metals over its Mount Isa project, in Queensland.
The farm-in and joint venture (JV) agreement covered the Overlander, Even Steven and Dronfield iron-oxide copper-gold (IOCG) targets, covering some 250 km2.
Under the terms of the agreement, Newmont Exploration could earn a 75% interest in the JV by spending $10.5-million through a staged investment.
The US major would be required to refund Hammer some $75 000 for project consolidation costs, and could earn its first 35% interest in the JV area by spending $1.45-million within two years.
The miner could then earn up to a 65% interest by spending an additional $3.05-million within a further two years.
At this point, if Hammer elected not to contribute to further expenditure, Newmont could elect to increase its share in the JV to 75% by funding an additional $6-million of expenditure or by completing a feasibility study.
At Hammer’s option, Newmont could earn an 80% interest in the JV by financing Hammer’s share of future expenditure until the start of production, with Hammer to repay the funds from project cash flow.
“We have been working on this deal for some time now and the opportunities that it brings are very obvious to us,” said Hammer CEO Alex Hewlett.
“Newmont’s contribution gives our exploration budget a major boost. It allows Hammer to accelerate exploration on three of its highly prospective IOCG targets while independently advancing exploration on the other IOCG systems it has generated over the last two years.”
The JV was hoping to define an Ernest Henry style copper-gold deposit, which hosts some 220-million tonnes of ore at 1.1% copper and 0.5 g/t gold.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
CSIR International Convention Centre (CSIR ICC) - the leading conference and events venue in Pretoria/Tshwane.
VISIT SHOWROOM
We supply customers with practical affordable solutions for their testing needs. Our products include benchtop, portable, in-line process control...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
