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.
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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.
