The farm-in agreement will give Newcrest the right to earn up to 80% interest in the property by funding exploration up to $10m.
Alice Queen managing director Andrew Buxton said: “It is very pleasing to be forming a relationship with a company like Newcrest, who has the scale, the expertise and the experience to assist in unlocking the value of our New South Wales tenements.
“Most importantly, however, is that this relationship is based on a common goal, that being to find the next Cadia Valley.”
According to the deal, Newcrest will have an option to receive the right to secure an interest in tenements by funding $2m as exploration expenditure within 24 months from the signing of formal agreements, with an obligation to incur at least $1m of exploration spending before any withdrawal.
Newcrest can gain the right to earn a 51% interest in the tenements by funding not less than $3m of exploration expenditure during the 24-months after completion of the option expenditure in Stage 1.
In addition, Newcrest has the right to earn a further 29% interest in the tenements by incurring not less than $5m of exploration expenditure during the 60 months following completion of Stage 1.
This will give the firm an aggregate 80% interest in the gold project.
Under the proposed farm-in, the company will also agree to grant rights of exclusivity to Newcrest over the Looking Glass Project during the farm-in agreement.