Gold major Newcrest Mining has taken a 40% stake in the Havieron gold project, in Western Australia, after reaching the Stage 2 of its farm-in agreement with London-listed Greatland Gold.
Newcrest could earn up to a 70% interest in the Havieron joint venture by spending $65-million on the project and completing a series of exploration and development milestones over a four-stage earn-in, stretched over six years.
The company could then acquire an additional 5% interest at the end of the farm-in period at fair market value.
Newcrest spent an initial $10-million during Stage 1 of the farm-in, and a further $10-million during Stage 2, to reach its 40% stake.
Over the next 24 months, the company will spend a further $25-million to increase its stake to 60%.