has signed a $65m Farm-In Agreement with Newcrest Mining, one of the world’s largest gold mining companies. The agreement is to explore and develop Greatland’s Haverion gold-copper project in the Paterson region, Western Australia.
Newcrest has a right to acquire up to 70% in 12 blocks within the Havieron target, by spending up to $65m on completing exploration and development milestones in a four-stage Farm-in over six years.
After completing the four-stage Farm-in, Newcrest has an option to acquire an additional 5% at fair market value taking its interest to 75%. It also has a first right of refusal over the Black hills and Paterson Range East licences, giving it the option to take an interest at the properties before any third party.
Gervaise Heddle, CEO of Greatland Gold, said “Newcrest's first right of refusal over the remainder of Greatland's Paterson project (the Black Hills and Paterson Range East licences and the areas of the Havieron licence not included in the Tenement Blocks) represents a strong endorsement of the attractiveness and prospectivity of our licences in the region.”
Fraser MacCorquodale Newcrest General Manager Exploration, commented: "We are excited to partner with Greatland Gold on this opportunity. The Paterson province is a great place for gold-copper ore bodies. Leveraging our existing operations at Telfer represents an opportunity to create value for both companies and their shareholders."
Shares in Greatland soared 21% to 2.225p following the announcement
Gervaise Heddle added: “Greatland will receive tremendous benefit from Newcrest's experience as a developer and producer at Telfer and Newcrest's broader understanding of the geology of the Paterson region.”
“We believe that this deal represents a win-win for both parties due to the potential for significantly reduced capital costs and increased efficiency resulting from ore being toll processed at Newcrest's nearby Telfer mine.”
He told investors that the expertise Newcrest brings will help fast track the project through to a completed Feasibility Study and eventually if successful, gold production and positive cash flows.
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