The Greatland Gold plc (LON: GGP) share price jumped 10.3% after announcing that it had entered into a farm-in and joint venture agreement with Rio Tinto, the global mining group, to fast-track the exploration of a highly prospective tenure within the Paterson Province of Western Australia.
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The Paterson South Project is located near Greatland's world-class Havieron gold-copper project, with the farm-in and joint venture arrangement being consistent with the company’s Australian asset growth strategy and commitment to exploration success.
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The project is located in an area with several underexplored anomalies, which the company considers a Havieron lookalike within the Paterson Province. Furthermore, a historical delineation of gold in rock chips and copper with an intersection and strong correlation to a Telfer-style deposit is present.
Greatland Gold is expanding its footprint in Australia with the Paterson South project by leveraging its existing presence in Western Australia, its good standing within the Paterson community, and the robust technical knowledge fostered through the discovery of Havieron.
The farm-in agreement has an initial minimum commitment of A$1.1 million of expenditure and 2,000 metres of drilling before 31 December 2024. Greatland is expected to commence drilling in 2023. The company plans to acquire up to a 75% joint venture interest in the project under the two-stage farm-in arrangement.
Stage one of the farm-in agreement will see Greatland earn a 51% joint venture interest in the Paterson South Project by incurring at least A$7.1 million of exploration expenditure and completing 7,500 metres of drilling within four years.
Stage two of the agreement will see Greatland earn a further 24% interest in the joint venture by spending a further A$14 million of exploration expenditure and completing another 17,000 metres of drilling within three years of completing stage one.
Greatland Gold’s Managing Director, Shaun Day, commented: “The Paterson South Project tenement package is an outstanding opportunity with a number of high-priority, highly prospective and heritage-cleared drill targets. We expect some of these targets to be incorporated into our 2023 drilling campaign. These targets include underexplored anomalies which the Company considers to be the closest to a Havieron lookalike within the Paterson Province.”
*This is not investment advice.
Greatland Gold (GGP) share price.
The Greatland Gold (GGP) share price jumped 10.27% to trade at 8.05p, from Friday’s closing price of 7.30p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.