Starvest PLC Investee Company Greatland Gold signs US$65m deal (7816S)
14 March 2019 - 12:47AM
UK Regulatory
TIDMSVE
RNS Number : 7816S
Starvest PLC
13 March 2019
13 March 2019
Starvest Plc ("Starvest" or the "Company")
Investee Company Greatland Gold plc signs US$65m deal for
Havieron Gold-Copper Find
Starvest PLC (LON:SVE), the London Stock Exchange AIM-listed
specialist mining and resources investment business, is pleased to
advise shareholders that investee company Greatland Gold plc
("Greatland"; AIM:GGP) has entered into a "farm-in" agreement with
Newcrest Operations Limited ("Newcrest"), a wholly owned subsidiary
of Newcrest Mining Limited (ASX:NCM), Australia's leading gold
company and one of the world's largest gold producers.
Under the agreement, Newcrest will establish a joint venture
with Greatland on the Havieron Gold-Copper project, which is
located in the highly attractive Paterson Region in northern
Western Australia. Under a series of staged investments, Newcrest
may acquire up to 70% of the joint venture for US$65m (GBPGBP50m)
over a six-year period.
The original announcement by Greatland can be found at the
following link:
https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/GGP/13998113.html
The original announcement by Newcrest can be found at the
following link:
https://www.asx.com.au/asxpdf/20190312/pdf/443f1722hyf8p0.pdf
Callum Baxter, Chairman and CEO, commented: 'This is a
significant milestone for Starvest investee company Greatland Gold
plc. The drilling intercepts announced late last year have
attracted the attention of the world's largest mining companies. We
view this deal with Newcrest as a major validation of the work done
by Greatland and the prospectivity of the Havieron gold-copper
find. The funding and support of Newcrest maximise the value of the
Havieron asset and provide the opportunity to fast track
production."
Newcrest has entered into an exploration farm-in agreement that
establishes a joint venture with Greatland over part of its
Havieron licence. Newcrest believes Havieron has the potential to
deliver high grade gold-copper ore feed to its Telfer operation,
located only 45km to the west. Consequently, the farm-in agreement
anticipates that the resulting joint venture ore will be processed
at Telfer, which has extensive infrastructure and processing
capacity, under a tolling arrangement.
Newcrest has a minimum commitment of US$5m over an initial
12-month period with the potential for Newcrest to earn up to a 70%
interest through total expenditure of US$65m over a 6-year period.
Newcrest may acquire an additional 5% interest at the end of the
farm-in period at fair market value for cash.
Greatland is well-funded to pursue its exploration work on the
remaining parts of the Havieron licence and two other Paterson
licences, as well as its five other project areas in Australia,
with the potential to add other exciting mineral exploration
discoveries.
Starvest is a specialist mining and resource investment company
and has the industry knowledge and market exposure to select
compelling opportunities early in the investment cycle.
Investors are encouraged to view our RNS feed on the Starvest
web site www.starvest.co.uk/announcements.
For disclosure, Callum Baxter is founding director and Technical
Director of Greatland Gold plc and Starvest holds 84,000,000 shares
in Greatland Gold plc.
Callum N Baxter
Chairman & Chief Executive
13 March 2019
Enquiries to:
Starvest PLC
Callum Baxter, Chairman/CEO +44 (0)7922 255 933
cbaxter@starvest.co.uk
Grant Thornton UK LLP (Nomad)
Colin Aaronson, Harrison Clarke or Seamus Fricker +44 (0)2073
835 100
SI Capital Ltd (Broker)
Nick Emerson or Alan Gunn +44 (0)1483 413 500
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END
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