Australia-based Newcrest Mining has reached an agreement with gold ore mining company ABM Resources to jointly advance the exploration of the Euro project in the Tanami region of Australia’s Northern Territory.
Both parties are set to explore ABM’s various licence areas and tenement applications at the Euro project as part of the arrangement.
The companies are now scheduled to hold talks on finalising a binding farm-in and joint venture (JV) agreement within two months of the latest deal’s signing date.
The new agreement requires Newcrest to fund up to A$12m ($8.95m) over a period of seven years to eventually earn an interest of up to 75% in the project, which comprises key targets along strike or parallel to the Trans-Tanami Trend.
ABM Resources managing director Matt Briggs said: “Newcrest’s entry into the Tanami Region of the Northern Territory supports our belief this area will yield Australia’s next major gold discoveries.
“Combining our technical skills to direct a major new exploration programme will help accelerate discovery in the region.”
Newcrest will be required to incur an expenditure of A$6m towards exploration costs during the first phase of development in order to earn a 51% interest in the project.
Thereafter, the company can choose to proceed to further increase its stake to 75% by funding an additional A$6m ($4.48m) to meet the exploration costs within three years from electing to begin the second stage of earn-in.
Alternatively, Newcrest will be permitted to withdraw from the earn-in after spending at least A$2m ($1.49m) during the Stage 1.