The two companies said the option exercise price is expected to be set in mid-February 2022.
The proceeds will first be used to repay the outstanding balance under the Newcrest loan facility, Greatland said in the statement.
The recent Havieron prefeasibility study returned capital costs of A$529 million for a 2 million tonne per annum operation to produce 160,000 ounces of gold and 6,900 tonnes of copper at AISC of $990/oz over nine years. Processing will take place through Newcrest’s nearby Telfer copper-gold mine’s mill.
Newcrest also has the conditional right to an additional 10% joint venture stake, which would bring its participation up to 70%. The gold giant would have a 75% stake if both options are exercised.
The Melbourne-based company has been aggressively searching for juniors with appealing assets to jointly develop.
In 2019, it acquired a 70% stake in Canada’s Red Chris copper and gold mine from Imperial Metals (TSX: III).
Last month, it bought all outstanding common shares of Pretium Resources (TSX: PVG, NYSE: PVG) it does not already own in a deal that valued the Canadian miner at $2.8 billion.
The Paterson region hosts several large gold and/or copper deposits such as Nifty, Winu and Newcrest’s own Telfer.
