Antipa Minerals Limited (ASX: AZY) has announced a highly positive update on its 100%-owned ground in the Paterson Province of Western Australia.
The company reported that it has signed a $60 million exploration farm-in and joint venture agreements with Newcrest in respect of a 2,180km2 southern portion of the Antipa’s 100%-owned ground in the Paterson Province of Western Australia.
The company said that this will now be known as the “Wilki Project”.
AZY reported that the key terms include initial $6 million minimum exploration expenditure within 2 years to be managed by Antipa; further $10 million exploration expenditure within 5 years of commencement to earn a 51% joint venture interest; and further $44 million exploration expenditure within 8 years of commencement to earn a 75% joint venture interest.
The company announced that Newcrest will acquire a 9.9% interest in Antipa by subscribing for $3.9 million in shares at 1.7 cents per share.
The 2,180km2 southern portion of the Antipa’s 100%-owned ground in the Paterson Province of Western Australia has now been named as the Wilki Project.
Antipa reported that it has now signed a $60 million exploration farm-in and joint venture agreements with Newcrest.
Farm-in and JV agreement with Newcrest
The Company reported that its wholly owned subsidiaries, Antipa Resources Pty Ltd, Kitchener Resources Pty Ltd, and MK Minerals Pty Ltd, have entered into a Farm-in Agreement and a Joint Venture Agreement with Newcrest. The Farm-in Agreement will commence upon completion of the Share Placement.
Under the Farm-in Agreement, Newcrest may acquire up to a 75% joint venture interest in the Company’s Wilki Project in a staged process.
Terms of agreements
AZY reported that the key terms include initial $6 million minimum exploration expenditure within 2 years to be managed by Antipa; further $10 million exploration expenditure within 5 years of commencement to earn a 51% joint venture interest; and further $44 million exploration expenditure within 8 years of the commencement to earn a 75% joint venture interest.
Initial fixed commitment
The company announced that Newcrest has made an initial fixed commitment of A$6 million expenditure on the Wilki Project within two years of execution of the Agreements.
AZY said that the initial exploration activity for the Wilki Project is anticipated to commence in the next 4-6 weeks and expected to include field reconnaissance programme including mapping and geochemical sampling; aerial electromagnetics over areas not previously covered by AEM; induced Polarisation survey to target prospects beneath cover; and reverse Circulation and diamond core drill programmes testing defined targets under cover, including deeper magnetic Havieron analogue anomalies.
Antipa will manage operations during this initial period and will receive a management fee of 10% on all eligible expenditure incurred in that period. At the end of this initial period Newcrest can elect to continue with the earn-in and proceed to Stage 1.
Stage 1 earn-in
The terms state that on election to proceed to the Stage 1 earn-in, Newcrest may sole fund a further $10 million expenditure by the end of five years from the commencement of the Farm-in Agreement to earn a 51% interest in the Wilki Project. Newcrest can extend this earn-in period by up to two years in aggregate.
Stage 2 earn-in
Antipa reported that on election to proceed to the Stage 2 earn-in, terms dictate that Newcrest may sole fund a further $44 million expenditure by the end of eight years from commencement of the Farm-in Agreement to earn a 75% interest in the Wilki Project.
The company announced that upon Newcrest earning its initial 51% interest the parties will form a joint venture in respect of the Wilki Project, which will be governed by the Joint Venture Agreement.
In addition to the Farm-in, Newcrest and Antipa have also executed a subscription agreement whereby Newcrest will acquire a 9.9% shareholding in Antipa at 1.7 cent per share.
Antipa is expected to use these funds for the purpose of conducting exploration activities in the Paterson Province.
Other updates on Antipa
Antipa said that it retains 100% ownership of 1,700km2 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.
Antipa said that it will remain well-funded to continue exploration of its 100%-owned ground, following completion of the Share Placement.
In addition, Rio Tinto Exploration Pty Ltd continues to fully fund the 1,300km2 Citadel Project joint venture exploration activities.
Antipa’s Executive Chairman, Stephen Power, said: “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.
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 programme 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% owned tenure.”