Newcrest Mining
(ASX:NCM) has announced that it has entered into an agreement with Sumatra Copper and Gold for a joint venture investment into one of Sumatra’s Indonesian gold projects.
Under the terms of the agreement, Newcrest will take an initial 7.1% stake in Sumatra for $2.5 million comprising of 10 million shares at $0.25 per share and 10 million options.
CEO Ian Smith says the relationship with Sumatra will enable the company to leverage exploration in the Asia-Pacific region.
Newcrest advises they intend to enter into definitive agreements by August 17, with the joint venture investment also dependent on approvals by Indonesian authorities.
Newcrest Mining reported a profit of $248.1 million for the year ending 30 June 2009.
