Newcrest inks $65-million JV deal with Greatland Gold
Australia’s largest gold producer, Newcrest Mining (ASX: NCM), continued its deal-making spree Tuesday by setting a joint venture with Greatland Gold (LON:GGP), which will focus on advancing the explorer’s Havieron project in Western Australia's Paterson region.
The agreement comes only a day after Newcrest announced it was buying a 70% stake in the Red Chris copper and gold mine in Canada from Imperial Metals (TSX: III) for $806.5 million.
The Melbourne-based company, which is also the world’s No. 3 gold producer by market value, will maintain a majority interest in the joint venture. It will also be the manager of the mining program during the so called farm-in period, with the option to earn up to a 70% stake by spending up to $65 million over a six-year period after an initial investment of $5 million.
Newcrest will have a majority interest in the joint venture and it will also be the manager of the mining program during the so called farm-in period.
Newcrest plans to process any ore from the Havieron site at its Telfer mine, located only 45km west, the company said.
“We are excited to enter into this partnership, Newcrest’s chief development officer, Michael Nossal, said in the statement. “Further exploration at Havieron is in line with our strategy in Australia of looking under-cover and it is becoming more and more evident that the Paterson region is highly prospective for under-cover discoveries.”
Greatland Gold’s chief executive officer, Gervaise Heddle, said he believed the deal represented a win-win for both parties due to the potential for significantly reduced capital costs and increased efficiency.
“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,” Heddle said in a separate statement.
The agreement comes amid a wave of consolidation in the gold industry, as the largest producers seek to increase the quality of their portfolios, boost reserves of the precious metal or win operational savings.
The Paterson region hosts several large gold and/or copper deposits such as Nifty, Winu and Newcrest’s own Telfer. World’s second largest mining company Rio Tinto (ASX, LON:RIO) is very invested in the area and its recent application for nearly 30 exploration licenses has sparked a stampede into adjacent lots by other explorers, who see the miner's aggressive activity as an indicator of a highly promising find.
Shares in Greatland skyrocketed on the news and were trading 20.6% higher onTuesday at 2.21p by 1:00 pm London time.
source: MINING.COM
Top News
Six last month
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Gold price faces worst week since 2021 as Fed signals no rate-cut rush
Gold loses some luster after Trump’s decisive win
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Hedge funds slash bullish wagers on gold over Trump election win
Resolute Mining says it will pay Mali $160 million in tax dispute
Families gather at South African mine shaft where hundreds are feared stuck underground
Higher silver supply to reduce global deficit by 4% in 2024
Sierra Leone woos miners to clean energy with $11 billion plan
Alrosa plans production cuts and staff reduction for 2025
Chile’s rare salt flat fish face threat from lithium mining project
Endeavour Silver raises $73m for Pitarrilla project
BHP to spend up to $14 billion on Chilean copper expansion
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
China’s germanium, gallium ban could cost the US $3.4 billion
South Africa police standoff with illegal gold miners escalates
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Sierra Leone woos miners to clean energy with $11 billion plan
Alrosa plans production cuts and staff reduction for 2025
Chile’s rare salt flat fish face threat from lithium mining project
Endeavour Silver raises $73m for Pitarrilla project
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
Newmont sells Ontario gold mine to Orla for $850 million
