MELBOURNE, Australia,
Nov. 29, 2020 /CNW/ - Newcrest Mining
Limited (ASX, TSX, PNGX: NCM) has entered into a fully-termed Joint
Venture Agreement with Greatland Gold plc (Greatland Gold)
for the Havieron Project which is located 45km east of its existing
Telfer operation, and has agreed to provide Greatland Gold with a
US$50 million loan to fund certain
early works and growth drilling activities at the Project.
Newcrest has now met the Stage 3 expenditure requirement
(US$45 million) and is entitled to
earn an additional 20% joint venture interest, resulting in an
overall joint venture interest of 60%.
Additionally, Newcrest has entered into a Farm-in and Joint
Venture Agreement with respect to Greatland Gold's Black Hills and
Paterson Range East exploration licences, through a new joint
venture agreement with Greatland Gold called the Juri Joint
Venture.
Newcrest Managing Director and Chief Executive Officer,
Sandeep Biswas, said "We are excited
to extend our relationship with Greatland Gold and expand our
presence in the highly prospective Paterson Province. The Havieron Joint Venture
and Loan Agreements support the continued progress at Havieron with
the potential to deliver commercial production within two to three
years from the commencement of the decline. The Juri Joint Venture
complements our strong pipeline of exploration prospects and the
associated tenements are favourably located in close proximity to
our established Telfer operation."
Havieron Joint Venture Agreement
A fully-termed Joint Venture Agreement between Newcrest and
Greatland Gold for the Havieron Project has now been finalised.
This agreement provides a formal framework between the two parties
beyond the existing Farm-in Agreement1 and facilitates
the expansion of exploration and early works activities, including
the construction of a box-cut and a decline.2 Newcrest's
ability to earn a 70% interest through expenditure of US$65 million and the delivery of a
Pre-Feasibility Study remains unchanged. Newcrest is the Manager of
the Joint Venture.
The fully-termed Joint Venture Agreement also records the
intention of the parties that:
- Prior to the completion of the Pre-Feasibility Study, Greatland
Gold will fund its 30% share of early works and growth drilling
activities3 and after the completion of the
Pre-Feasibility Study Greatland Gold will fund its proportional
share of all joint venture expenditure towards the delivery of the
Feasibility Study. This funding will be via a new US$50 million Loan Agreement provided by
Newcrest; and
- Newcrest will deliver the Pre-Feasibility Study (incorporating
ongoing growth drilling activities) in Stage 4.
Consequently, Newcrest has now met the Stage 3 expenditure
requirement (US$45 million) and is
entitled to earn an additional 20% joint venture interest,
resulting in an overall joint venture interest of 60% (Greatland
Gold 40%).
The Havieron Joint Venture Agreement includes tolling principles
reflecting the intention of the parties that, subject to a
successful exploration program and Feasibility Study and a positive
Decision to Mine, the resulting joint venture mineralised material
will be processed at Telfer.4
Loan Agreement
Newcrest and Greatland Gold have entered into a Loan Agreement
which will provide Greatland Gold with access to loan facilities
totalling US$50 million.
Interest on the loans will accrue at LIBOR (or its successor
rate, if applicable) plus 8%.
The Loan Agreement has been secured against Greatland Gold's
joint venture interest and will be used to fund its 30% share of
early works and growth drilling activities up to the completion of
a Pre-Feasibility Study and, thereafter, joint venture expenditure
requirements towards completion of a Feasibility Study. The loan is
repayable from 80% of the net proceeds from Greatland Gold's share
of production at Havieron.
Should Newcrest exercise its option to acquire an additional 5%
joint venture interest at fair market value at the end of the
farm-in period, the amount outstanding under the Loan Agreement
will be offset against the purchase price payable by Newcrest.
Juri Farm-in and Joint Venture
Agreement
Newcrest has also entered into the Juri Joint Venture which is a
farm-in and joint venture agreement with Greatland Gold, with
respect to its Black Hills (E45/4512) and Paterson Range East
(E45/4928) Projects, located within the Paterson Province approximately 50km from the
Telfer operation. The new joint venture covers an area of
approximately 248km2.
Under the terms of the agreement, Newcrest has been granted an
initial 25% joint venture interest with the potential to earn up to
a 75% joint venture interest through total expenditure of
A$20 million over a two stage
earn-in, across a five year period. Greatland Gold will manage the
Juri Joint Venture until the end of calendar year 2021, after which
Newcrest will have the right to be appointed as Manager.
Newcrest and Greatland Gold have agreed an exploration programme
until the end of calendar year 2021 which is anticipated to drill
test priority targets, including the Parlay target within the Black
Hills Project and the Goliath, Outamind and Los Diablos targets
within the Paterson Range East Project. Additionally, geophysical
work will be conducted in calendar year 2021 to identify other
potential targets within both Projects.
Newcrest also retains a right of first refusal over Greatland
Gold's Scallywag Project (E45/4701) under the Havieron Joint
Venture Agreement.
Authorised by the Newcrest Disclosure Committee
For further information please contact
Investor
Enquiries:
Tom Dixon
+61 3 9522 5570
+61 450 541 389
Tom.Dixon@newcrest.com.au
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Ben Lovick
+61 3 9522
5334
+61 407 269
478
Ben.Lovick@newcrest.com.au
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North American
Investor Enquiries:
Ryan Skaleskog
+1 866 396 0242
+61 403 435 222
Ryan.Skaleskog@newcrest.com.au
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Media
Enquiries:
Tom Dixon
+61 3 9522 5570
+61 450 541 389
Tom.Dixon@newcrest.com.au
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Annie
Lawson
+61 3 9522
5750
+61 409 869
986
Annie.Lawson@newcrest.com.au
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This information is available on our website at
www.newcrest.com
Forward Looking Statements
This document includes forward looking statements and forward
looking information within the meaning of securities laws of
applicable jurisdictions. Forward looking statements can generally
be identified by the use of words such as "may", "will", "expect",
"intend", "plan", "estimate", "anticipate", "believe", "continue",
"objectives", "targets", "outlook" and "guidance", or other similar
words and may include, without limitation, statements regarding
estimated reserves and resources, certain plans, strategies,
aspirations and objectives of management, anticipated production,
study or construction dates, expected costs, cash flow or
production outputs and anticipated productive lives of projects and
mines. Newcrest continues to distinguish between outlook and
guidance. Guidance statements relate to the current financial year.
Outlook statements relate to years subsequent to the current
financial year.
These forward looking statements involve known and unknown
risks, uncertainties and other factors that may cause Newcrest's
actual results, performance and achievements or industry results to
differ materially from any future results, performance or
achievements, or industry results, expressed or implied by these
forward-looking statements. Relevant factors may include, but are
not limited to, changes in commodity prices, foreign exchange
fluctuations and general economic conditions, increased costs and
demand for production inputs, the speculative nature of exploration
and project development, including the risks of obtaining necessary
licences and permits and diminishing quantities or grades of
reserves, political and social risks, changes to the regulatory
framework within which Newcrest operates or may in the future
operate, environmental conditions including extreme weather
conditions, recruitment and retention of personnel, industrial
relations issues and litigation. For further information as to the
risks which may impact on Newcrest's results and performance,
please see the risk factors included in the Annual Information Form
dated 13 October 2020 lodged with ASX
and SEDAR.
Forward looking statements are based on Newcrest's good faith
assumptions as to the financial, market, regulatory and other
relevant environments that will exist and affect Newcrest's
business and operations in the future. Newcrest does not give any
assurance that the assumptions will prove to be correct. There may
be other factors that could cause actual results or events not to
be as anticipated, and many events are beyond the reasonable
control of Newcrest. Readers are cautioned not to place undue
reliance on forward looking statements, particularly in the current
economic climate with the significant volatility, uncertainty and
disruption caused by the COVID-19 pandemic. Forward looking
statements in this document speak only at the date of issue. Except
as required by applicable laws or regulations, Newcrest does not
undertake any obligation to publicly update or revise any of the
forward looking statements or to advise of any change in
assumptions on which any such statement is based.
1
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The Havieron Project
is operated by Newcrest and under the terms of the Farm-in
Agreement which commenced in May 2019, Newcrest can earn up to a
70% joint venture interest through the expenditure of US$65 million
and the completion of a Pre-Feasibility Study over a six year
period. At the end of the farm-in period, Newcrest may acquire an
additional 5% interest at fair market value.
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2
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Subject to receipt of
all necessary approvals, permits, internal and regulatory
requirements.
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3
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Early works
expenditure comprises expenditure on the decline and associated
works, including the Havieron camp, access roads and related
surface infrastructure. Growth drilling expenditure comprises
exploration expenditure in connection with growth drilling outside
of the area of the initial Inferred Mineral Resource estimate which
is expected to be delivered in the December 2020
quarter.
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4
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Other customary joint
venture terms apply and pre-emptive rights apply in respect of any
proposal by a JV participant to enter into a metal streaming or
royalty transaction.
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SOURCE Newcrest Mining Limited