07/04/2008 - 13:39

SmartTrans Holdings in $10m JV with Newcrest Mining

07/04/2008 - 13:39

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Newcrest Mining Ltd has agreed to farm into the Mount Mackenzie gold project in Queensland which is currently owned by Leederville-based SmartTrans Holdings Limited (60%) and Australia Oriental Minerals NL (40%).

Newcrest Mining Ltd has agreed to farm into the Mount Mackenzie gold project in Queensland which is currently owned by Leederville-based SmartTrans Holdings Limited (60%) and Australia Oriental Minerals NL (40%).

Newcrest will manage the new joint venture and plans to commence work on the gold project this month.

The agreement allows Newcrest to earn 60% equity in the new project, by spending $10 million over 5 years on three tenements, and the company has committed to spend $1.5 million during the next 18 months.

If Newcrest spends a further $8.5 million in the following 3.5 years then it will earn 60% equity however no equity is earned prior to the completion of this expenditure.

SmartTrans will then have the option to contribute funds to the project or to not contribute and dilute its interest.

SmartTrans and Australia Oriental Minerals may convert their combined interests to a net smelter royalty of up to 2.5% if and when a decision to mine is made.

SmartTrans Chairman, John Forsyth AM, acknowledged Newcrest's experience in the discovery and mining of bulk tonnage porphyry-related gold deposits and welcomed the technical expertise and financial strength it would bring to the project.

 

 

 

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