Antipa Minerals Ltd (ASX: AZY) has welcomed the decision by Newcrest Operations Limited to proceed to the next stage (Stage 1) of the farm-in agreement on the Wilki Project in the Paterson Province of Western Australia.
Stage 1 requires Newcrest to invest a further A$10 million of exploration expenditure by March 2025 to earn a 51% joint venture interest in the Wilki Project.
Newcrest’s decision to proceed with Stage 1 follows the satisfactory completion of the initial commitment of A$6 million exploration expenditure, which it had to complete within the first two years of commencement of the Wilki Project farm-in agreement.
The parties have agreed that Antipa will remain as operator of the Wilki Project until the completion of the current programme of works, which is anticipated to complete in Q1 CY 2022.
Newcrest may then assume management of the operations for the remainder of Stage 1 or request that Antipa continue as operator.
Farm-in Terms
The farm-in agreement with Newcrest requires the following expenditure to be incurred and paid by Newcrest to earn up to a 75% joint venture interest:
• Initial commitment: A$6 million in exploration expenditure within two years of commencement of the farm-in agreement. This has now been satisfied. No joint venture interest was earned by the incurring of this amount.
• Stage 1: a further A$10 million in exploration expenditure by March 2025 to earn a 51% joint venture interest. Newcrest can extend this period by up to 2 years. Newcrest is now proceeding with this stage. Newcrest has rights to withdraw from the farm-in during the Stage 1.
• Stage 2: A$44 million in exploration expenditure by March 2028 to earn a 75% joint venture interest. Newcrest can extend this period by up to two years (in aggregate with any earlier extension).
Upon Newcrest earning a 51% interest in the Project, Antipa and Newcrest will become parties to a Joint Venture Agreement under terms already agreed.
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