THE BOURSE WHISPERER: Antipa Minerals (ASX: AZY) has struck a $60 million farm-in agreement and associated exploration Joint Venture agreement with Newcrest Operations Limited.
The deal covers the southern portion of the company’s 100 per cent-owned ground in the Paterson Province of Western Australia that is to be now known as the Wilki project.
Newcrest has also entered into a subscription agreement with Antipa, under which Newcrest will acquire a 9.9 per cent shareholding in Antipa through a placement of new shares at 1.7 cents per share to raise $3.9 million and have the right but not the obligation to appoint a director to Antipa’s board.
Key terms of the deal include:
An initial $6 million minimum exploration expenditure within two years to be managed by Antipa;
A further $10 million exploration expenditure within five years of commencement to earn a 51 per cent JV interest; and
A further $44 million exploration expenditure within eight years of commencement to earn a 75 per cent JV interest.
“We are delighted to welcome Newcrest as a shareholder of Antipa and to be partnering with them to progress the exploration of our Wilki project in the world-class Paterson Province of Western Australia,” Antipa Minerals executive chairman Stephen Power said in the company’s announcement to the Australian Securities Exchange.
“This transaction demonstrates Newcrest’s commitment to the region and its strong belief in the prospectivity of the Wilki project, which is strategically located surrounding its long-running Telfer gold-copper operation and ore processing facility.
“The agreement with Newcrest is designed to ensure a robust exploration program will be undertaken across the Wilki project over the coming years, including the drill testing of a number of highly prospective targets.
“Furthermore, the Share Placement positions Antipa in a strong financial position enabling the company to progress exploration activities on its remaining 100 per cent-owned tenure.”
Antipa retains 100 per cent ownership of 1,700 square kilometres of highly prospective ground in the Paterson Province, including existing gold-copper resources at Minyari-WACA and its recently discovered Reaper-Poblano-Serrano gold-copper trend.
Rio Tinto Exploration will continue to fully fund the 1,300sqkm Citadel project JV exploration activities.