Newcrest Mining Limited
(ASX:NCM) has signed an $11 million farm-in agreement with Oro Verde to fund and explore the Topacio Gold Project in Nicaragua.
The project has identified the potential of a high-grade, multi-million ounce discovery.
Exploration will begin immediately with Newcrest to fund $6.1 million of exploration to earn an initial 51 per cent interest.
There is an option to fund a further $4.9 million of exploration for an addition 24 per cent interest.
Oro Verde has an option to buy 100 per cent of the project until February 2018.
Newcrest made a net profit of $506 million for the 2015 financial year.
