Aim-listed Greatland teams up with Australia’s largest gold miner Newcrest

London-listed Greatland Gold has reached an agreement to partner with one of the world’s largest gold miners as it looks to explore its most important Australian prospect.

Newcrest has signed a deal giving it the right to acquire up to 70 per cent of its Havieron target for $65m (£50m) over six years, the company announced today.

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The deal is divided into four stages which split Newcrest’s commitments into two $10m investments, one $25m and one $20m.

The funds will help Greatland drill during phase one and two, before carrying out feasibility studies in the final stages.

It is “very difficult” to tell how much cash might be needed to start producing from the mine, chief executive Gervaise Heddle told City A.M.

However, cooperating with Newcrest, which has a processing plant at the Telfer mine less than 30 miles away, will cut costs.

“It’s significant capital, but it’s going to be probably a lot less than it would otherwise be if we had to build a plant. I’m not sure if it’s half the amount or maybe a third of the amount, but certainly there’d be a very significant saving in terms of upfront capital,” Heddle said.

He said Newcrest will bring expertise to the table as well as its money.

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The firm, which has been listed on London’s Aim since 2006 has had questions about a dual listing elsewhere, Heddle said.

“We don't think that’s the key thing for now, we’re really focused on just pushing forward with our operations in Australia while maintaining our listing on Aim,” he told City PM, while declining to rule out a second float in future.