TORONTO, March 6, 2012 /CNW/ - Newcrest Mining Limited (Newcrest) and Frontier Resources Ltd (Frontier) are pleased to announce the signing of a Heads of Agreement (Agreement) by Frontier and a wholly-owned subsidiary of Newcrest, pursuant to which:
The Agreement is non-binding, other than with respect to the Share Subscription, exclusivity and confidentiality.
Under the Share Subscription, Newcrest will subscribe for A$750,000 of Frontier ordinary shares, comprising 7,026,429 million shares at A$0.1067 per share (approximately 2.3% of Frontier). The share placement will be undertaken immediately and it is Frontier's intention to use the proceeds to fund exploration of its various tenements.
The Proposed Farm-in relates to Frontier's Mt Andewa exploration licence EL1345 (Andewa) and the nearby Mt Schrader exploration licence application ELA1951 area (Schrader), with the Agreement recording a number of principles that will apply to the Proposed Farm-in if the parties successfully complete negotiations, including:
Frontier would manage and operate the project exploration program during the Minimum Commitment Period with Newcrest providing technical direction and support. Upon satisfaction of the minimum commitment, Newcrest may elect to assume management of the exploration activities.
The Proposed Farm-in is subject to a number of conditions, including obtaining all necessary government and regulatory approvals, Frontier and Newcrest successfully negotiating detailed binding farm-in terms based on the Agreement principles and satisfactory due diligence.
Frontier Chairman and Managing Director, Peter McNeil commented "We are excited to have a company of Newcrest's calibre as a shareholder and potential joint venture partner at the Andewa Project, and consider this announcement as endorsement of the potential of the Andewa Project. Frontier will benefit from Newcrest's expertise and capability in the ongoing efforts to unlock this potential."
Newcrest Executive General Manager Minerals, Colin Moorhead said "Newcrest is pleased to establish this relationship with Frontier in accord with our strategy of seeking opportunities for early stage entry into high-quality gold projects in the Asia-Pacific region".
PDF with caption: "Newcrest Mining and Frontier Resources enter into Heads of Agreement for Proposed Farm-in". PDF available at: http://stream1.newswire.ca/media/2012/03/06/20120306_C2070_DOC_EN_10802.pdf
Frontier Resources Ltd
Peter McNeil
P +61 (08) 9295 0388
F +61 (08) 9295 3480
[email protected]
www.frontierresources.com.au
Newcrest Mining Limited
Investor Enquiries - North America / Europe Investor Enquiries - Australia / Asia
Steve Warner
T: + 1 212 351 5064
E: [email protected]
Kim Kerr
T: +61 3 9522 5316
E: [email protected]
Media Enquiries
Kerrina Watson
T: +61 3 9522 5593
E: [email protected]
This information is available on our website at www.newcrest.com.au
Share this article