Newcrest Mining Limited (ASX:NCM) has finalised a farm-in agreement with Frontier Resources Limited (ASX:FNT) for the Andewa project in Papua New Guinea.
Under the terms, Newcrest can earn 60 per cent equity by providing exploration expenditure of $19.25 million over three years, with a minimum spend of $2.5 million.
Field crews have been mobilised to Andewa for completion of phase one of the program.
Newcrest cut its full year gold and copper production guidance in April, citing rising costs in labour, a fall in productivity and the strong Australian dollar.
Newcrest Mining generated a net profit of $684 million in the first half of its 2012 financial year.
