Newcrest in Wyoming deal

NEWCREST Mining has signed an option and earn-in agreement with Toronto-listed GFG Resources over ground in Wyoming, potentially worth as much as US$100 million.

Newcrest in Wyoming deal Newcrest in Wyoming deal Newcrest in Wyoming deal Newcrest in Wyoming deal Newcrest in Wyoming deal

GFG's Rattlesnake Hills project

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...