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Highlights
- Newcrest fulfils the first condition of the farm-in agreement for the Wilki Project.
- As a result, Newcrest will commence operations management at the project from 1 July 2022.
- Newcrest is currently focusing on satisfying the next condition of the farm-in agreement.
The shares of Newcrest Mining Limited (ASX:NCM) were spotted trading 0.117% lower at AU$25.54 per share at 10:48 AM AEST on the ASX today (23 May). Approximately 486,000 shares of Newcrest Mining were traded after the ASX opened for trading on Monday morning.
The ASX-listed gold miner announced that its subsidiary Newcrest Operations Pty Ltd had assumed management of the farm-in agreement on its Wilki Project, located in the Peterson Province, Western Australia.
The share price of Newcrest Mining has fallen almost by 11% on the ASX over the past 12 months. On the other hand, Newcrest Mining’s year-to-date share price gained approximately by 4% at 10:48 AM AEST on the ASX today (23 May).
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About Newcrest Mining’s decision:
Today, Antipa Minerals Limited (ASX:AZY) announced that Newcrest completed its initial commitment of an exploration expenditure worth AU$6 million in November 2021. As a result, the company decided to assume the management of the Wilki Project, followed by the completion of the initial commitment. Newcrest’s management of the operations of the project is expected to be effective from 1 July 2022.
Meanwhile, the shares of Antipa were spotted trading 6.976% higher at AU$0.046 per share at 11:12 AM AEST on the ASX today (23 May).
The terms of the farm-in agreement:
The following are the terms of the farm-in agreement with Newcrest:
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- An initial commitment worth AU$6 million in exploration expenditure within two years of commencement of the farm-in agreement. Newcrest has already satisfied this condition. However, no joint venture interest was earned by investing this amount.
- Stage 1: Newcrest additionally needs to spend AU$10 million of exploration expenditure by March 2025 to earn a 51% joint venture interest. The company may extend this period by up to two years. At present, Newcrest is proceeding with this stage.
- Stage 2: Newcrest will further pay AU$44 million in exploration expenditure by March 2028 to earn a 75% joint venture interest. Newcrest may extend this period by up to two years.
Also, note that Antipa Minerals and Newcrest will become parties of a joint venture agreement that has already been signed earlier after Newcrest earns a 51% interest.
Read more: NCM, EVN, PRU: How did these 3 ASX gold stocks perform YTD?
What did the management say?
About Newcrest:
Newcrest Mining Limited is an ASX-listed gold explorer with a market capitalisation of AU$22.83 billion. The company was established in 1990 with its headquarter in Melbourne, Australia. Newcrest is primarily involved with exploration, mine development, operations and sale of gold, gold & copper concentrate from its mines.
Newcrest also paid a fully franked interim dividend worth AU$0.140 per share to its eligible shareholders in March 2022, based on its earnings.
Read more: Newcrest (ASX:NCM) share price down over 10% in a month, here's why?
