Greatland Gold PLC Havieron - Mining Lease application agreements
08/06/2020 9:09am
UK Regulatory (RNS & others)
Greatland Gold (LSE:GGP)
Intraday Stock Chart
Monday 8 June 2020TIDMGGP
RNS Number : 2526P
Greatland Gold PLC
08 June 2020
8 June 2020
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR)
Greatland Gold plc
( " Greatland " or "the Company " )
Series of agreements to facilitate Mining Lease application at Havieron
Greatland Gold plc (AIM:GGP), the precious and base metals exploration and development company, is pleased to announce that a series of agreements has been executed in relation to the Havieron project variously between Newcrest Operations Limited ("Newcrest"), Western Desert Lands Aboriginal Corporation (Jamukurnu-Yapalikunu), the Prescribed Body Corporate for the Martu People of the Central Western Desert region in Western Australia ("WDLAC"), Greatland Gold plc ("Greatland") and Greatland Pty Ltd ("GPL"). The key aspects of the agreements are summarised in the Highlights section below.
Highlights of Agreements
Indigenous Land Use Agreement
-- Newcrest and WDLAC are parties to an Indigenous Land Use Agreement ("ILUA") which relates to the use of native title land across Newcrest's current operations at Telfer and its activities within a 60 kilometre radius around Telfer, which includes its exploration activities at Havieron. The parties have agreed that the ILUA will apply to any future development activities of the Joint Venture Participants (Newcrest and Greatland ) at Havieron.
-- The ILUA establishes a comprehensive framework between WDLAC, acting on behalf of the Martu People, and the Joint Venture Participants (Newcrest and Greatland), in regards to any future development activities at Havieron, including mine construction and mine operation.
Tenement Management and Re-Transfer Agreements
-- In order to lodge an application for a Mining Lease covering the Joint Venture Area ("JV Area") at Havieron, a 12 block area within E45/4701 in which Newcrest has a 40% beneficial interest (see announcement dated 1 April 2020), Greatland will transfer a 40% legal interest in the registered title to E45/4701 to Newcrest.
-- There is no change in the current respective beneficial interests of Newcrest or Greatland in regard to the JV Area (40% Newcrest, 60% Greatland).
-- There is no change in Greatland's beneficial interest in regard to the remainder of E45/4701. Greatland retains a 100% beneficial interest in the Non-JV Area, which includes the Scallywag prospect area, and has full access to that area to conduct further exploration work, subject to cultural heritage clearances.
-- Once the transfer of the legal interest in the registered title to E45/4701 is registered by the Western Australian Department of Mines, Industry Regulation and Safety ("DMIRS"), the Joint Venture Participants will apply for a Mining Lease in respect of the JV area.
-- Following the grant of the Mining Lease at Havieron, Newcrest will transfer its legal interest in the registered title to the Exploration Licence (being that part of E45/7401 not the subject of the Mining Lease application) to Greatland such that Greatland will re-establish a 100% legal interest in the registered title to E45/4701. No change in beneficial interest will occur at this point with both parties maintaining their respective share in the Joint Venture and Greatland retaining a 100% beneficial interest in the remainder of E45/4701.
Gervaise Heddle, Chief Executive Officer of Greatland Gold plc, commented: "The agreements announced today represent another important step forward for the Havieron project and will assist in the process for a Mining Lease application, which is expected to be lodged within the next couple of months.
"Greatland looks forward to further strengthening its relationship with WDLAC and the Martu People of the Central Western Desert region, both as a Joint Venture participant and through our own exploration activities in the Paterson region."
Background to Havieron and Farm-in Agreement with Newcrest
In March 2019, Greatland entered into a Farm-in Agreement with Newcrest Operations Limited, a wholly-owned subsidiary of Newcrest Mining Limited (ASX:NCM), to explore and develop Greatland's Havieron gold-copper discovery in the Paterson region of Western Australia. Newcrest has the right to earn up to a 70% interest in a 12-block area within E45/4701 that covers the Havieron target by spending up to US$65m. Newcrest may acquire an additional 5% interest at the end of the Farm-in period at fair market value.
Newcrest has completed Stage 2 of the Farm-in Agreement. In accordance with the terms of the Agreement, Newcrest has earned a 40% Farm-in Interest in the Havieron Project. In order to complete Stage 3 of the Farm-in, Newcrest must incur an additional US$25 million in expenditure and deliver a Pre-Feasibility study for the Havieron Project. If Newcrest successfully completes Stage 3, Newcrest will earn an additional 20% Farm-in Interest (cumulative 60% Farm-in interest).
During the Farm-In period, Newcrest will have a first right of refusal over the remainder of Greatland Gold's Paterson projects (Black Hills, Paterson Range East and remainder of the Havieron licence). The Farm-in Agreement includes tolling principles reflecting the intention of the parties that, subject to a successful exploration program and feasibility study, the resulting joint venture ore will be processed at Telfer, located 45km west of Havieron.
A regional map showing the Havieron licence area with regional targets and adjacent landholdings can be found at: www.greatlandgold.com/paterson
