The Newcrest Mining Ltd (ASX: NCM) share price edged higher in early trade, up 0.3% to $25.58.
It follows the report of a new project management agreement for the S&P/ASX 200 Index (ASX: XJO) gold-mining giant.
Newcrest share price higher on new management agreement
The Newcrest share price started Monday in the green after the miner reported its wholly-owned subsidiary – Newcrest Operations – will take over management of its farm-in agreement with Antipa Minerals Ltd (ASX: AZY) on the Wilki Project, located in Western Australia.
In November Newcrest completed its initial commitment of the agreement, having spent $6 million on exploration activities at the site. Antipa, meanwhile, has finalised the project’s current program of works.
The next stage required for Newcrest to earn a 51% interest in the joint venture (JV) is spending another $10 million on exploration before March 2025. The miner has commenced the next stage of exploration.
Newcrest can then earn a 75% interest in the JV if it spends an additional $44 million on exploration activities by March 2028.
What did management say?
Commenting on Newcrest’s decision to assume management of the Wilki Project, Antipa managing director Roger Mason said:
With our other major partners, Rio Tinto and IGO, already operating our Citadel JV and Paterson Farm-in Projects, respectively, this allows Antipa to dedicate its focus to the rapid advancement of our 100%-owned Minyari Dome Project.
The recent substantial resource upgrade at Minyari, to 1.8 million ounces of gold, readily demonstrates why we are now targeting a stand-alone mining and processing operation at Minyari via the usual evaluation studies.
While the Newcrest share price initially rose 0.3% on the news, Antipa shares gained 4.65%.
Newcrest will take over management of the operations of the Wilki Project on 1 July.
Newcrest share price snapshot
The Newcrest share price has gained 4.5% so far in 2022. By comparison, the ASX 200 is down 5.6% year to date.
The post What’s happening with the Newcrest share price on Monday? appeared first on The Motley Fool Australia.
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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