Newcrest Mining Ltd
(ASX:NCM) is poised to enter a joint venture partnership for exploration in Indonesia.
The gold miner has confirmed that it has inked a deal with Southern Arc Minerals Inc.
Newcrest says the deal can earn it majority interest in Southern Arc’s Taliwang project in Indonesia by funding exploration and studies expenses to a maximum of $US50 million.
When the project is complete Newcrest will hold a 63.75 per cent stake, having earned 75 per cent of Southern Arc’s interest. Newcrest says the deal is consistent with its strategy of seeking early stage entry into high-quality gold projects in the Asia-Pacific region.
Both companies intend to enter into definitive agreements by 31 March 2011.
Newcrest recorded a net profit of $602.4 million in the 2010 financial year.
