Newcrest signs Havieron Joint Venture Agreement and expands its presence in the highly prospective Paterson Province-PR Newswire APAC

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 CommitteeFor further information please contact

This information is available on our website at www.newcrest.com

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