The Australian major can ultimately earn 75% of the Rattlesnake Hills gold project by spending US$96.6 million on exploration or delivering a bankable feasibility study.
The agreement includes an initial 18-month option phase, whereby Newcrest will pay GFG $100,000 cash and spend at least $2.6 million on exploration before it can withdraw.
In Newcrest exercises the option, it will pay GFG $500,000 and can spend $14 million on exploration over four years to earn 49%.
A decision to move to stage two will trigger a $650,000 payment to GFG and boost Newcrest's stake to 51%, after which it can earn an additional 4% over a further two years by delivering a preliminary economic assessment.
If Newcrest moves to stage three, its stake will increase to 60% and i...