Newcrest International, a subsidiary of Newcrest Mining Ltd
(ASX:NCM), has signed a binding agreement with New Talisman Gold Mines in relation to the Rahu Project in New Zealand.
The NZ government has awarded Newcrest a 5-year exploration permit.
A key term of the agreement is if Newcrest spends more than NZ$ 5 million on the Rahu Project, a joint venture will be formed in which New Talisman will get a 20% interest.
In the meantime, Newcrest will hold 20% of the Project on Trust for New Talisman. But if a JV isn’t established, the entire Project will be transferred to New Talisman (subject to Ministerial consent).
Newcrest reported a net profit of $121.82 million at 31 December 2015.
