Newcrest Mining Ltd. entered into a deal with Greatland Gold PLC to earn up to a 75% stake on the Havieron gold tenement in Western Australia.
Newcrest will have to spend at least US$5 million on the project over an initial 12 months and could earn up to a 70% interest by spending US$65 million over six years. The company can acquire an additional 5% at the end of the farm-in period at fair market value.
Newcrest Chief Development Officer Michael Nossal said Greatland Gold's exploration to date has intersected significant mineralization only 45 kilometers from its own Telfer project.
Subject to a successful exploration program and feasibility study, the resulting joint-venture ore will be processed at Telfer, according to a March 12 release.
Newcrest will manage the exploration program during the farm-in period and while it maintains a majority interest. It will also have the first right of refusal over the rest of Greatland Gold's Paterson project, of which Havieron is part of.
The company recently entered into a US$806.5 million deal to acquire a 70% interest in Imperial Metals Corp.'s Red Chris copper-gold mine and surrounding tenements in British Columbia.