Newcrest may acquire an additional 5% interest at the end of the farm-in period at fair market value. 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.
Telfer is the largest processing facility in the Paterson Province and has sufficient capacity and capability to process other discoveries in this region. Newcrest believes that the Paterson Province presents significant additional opportunities for Telfer in the future.
In November 2020, Newcrest announced that it had entered into a fully-termed Joint Venture Agreement with Greatland Gold which provides a formal framework between the two parties beyond the existing Farm-In Agreement.
Newcrest has now met the Stage 3 expenditure requirements (US$45 million) and is entitled to earn an additional 20% joint venture interest, resulting in an overall joint venture interest of 60%.