By Oliver Griffin

 

Shares in Greatland Gold PLC (GGP.LN) rose sharply Tuesday after it said it has signed a farm-in deal with Newcrest Mining Ltd. (NCM.AU) to advance its Havieron license in Western Australia.

Greatland Gold said Newcrest--the world's third-biggest listed gold company by market value--has the right to acquire up to 70% in 12 blocks with the license that covers the Havieron target by spending up to $65 million and completing a series of milestones over a six-year period.

As well as the Havieron license, Newcrest will also have first right of refusal over the remainder of Greatland Gold's Paterson project, which includes the Black Hills and Paterson Range East license areas, as well as the remaining areas of the Havieron license.

During the farm-in period, Newcrest will act as manager. Drilling at Havieron will recommence in April at Newcrest's expense, Greatland Gold said.

Greatland Gold CEO Gervaise Heddle said he was delighted to welcome Newcrest at the Havieron license.

Shares at 0802 GMT were up 34% at 2.45 pence.

 

Write to Oliver Griffin at oliver.griffin@dowjones.com; @OliGGriffin

 

(END) Dow Jones Newswires

March 12, 2019 04:20 ET (08:20 GMT)

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