Prodigy Gold NL (ASX: PRX) (“Prodigy Gold” or the “Company”) is pleased to advise that it has signed a binding Exploration and Farm-in and Joint Venture Agreement (“Agreement”) with Newmont Exploration Pty Ltd, a wholly owned subsidiary of Newmont Corporation (“Newmont”) to advance exploration at the Monza Project located in the Northern Territory (the “Project”).

Under the Agreement, Newmont can earn an initial 51% interest in the Project by either incurring expenditure of A$6,000,000 or defining a JORC 2012 Inferred Mineral Resource (whichever occurs first) (Phase 1 Earn-In). The Joint Venture commences on Prodigy Gold receiving a completion notice from Newmont for the Phase 1 Earn-In. Once the Joint Venture decides to proceed with the development of a mining operation, Newmont will automatically earn an additional 29% interest in the Project (resulting in an 80% aggregate interest) (Phase 2 Earn-In).

If the Joint Venture completes the Phase 2 Earn-In, Prodigy Gold may (within 60 days of the receipt of the completion notice for the Phase 2 Earn-In) elect to bring Newmont’s interest in the Joint Venture to 85% and require Newmont to fund Prodigy Gold’s share of future Joint Venture costs (including feasibility study costs) from the date it receives such notice until the commencement of commercial production (the Financing Option).

Prodigy Gold must either elect to exercise the Financing Option, co-fund all future exploration and development or dilute its interest in the Project and convert to a 1% net smelter return royalty if its interest falls below 10%.


HIGHLIGHTS

  • Exploration Farm-in and Joint Venture Agreement (“Agreement”) signed with Newmont Exploration Pty Ltd, a wholly owned subsidiary of Newmont Corporation (“Newmont”), to advance exploration at the Monza Project located in the Northern Territory (the “Project”)
  • Prodigy Gold free carried until Newmont makes a decision to proceed with the development of a mine
  • Under the Agreement, Newmont can earn an initial 51% interest in the Project by either spending A$6 million on exploration or defining a JORC 2012 Inferred Mineral Resource
  • Newmont can earn an additional 29% interest in the Project if it makes a decision to mine
  • Prodigy Gold has a financing option exercisable from the decision to mine to commencement of commercial production
  • The Project area hosts several key targets along strike or parallel to the Trans-Tanami Trend – most targets have been subject to limited or no previous exploration
  • Prospectivity of the Project area highlighted by encouraging results from drilling completed at the Dune Prospect, located 1.5km to the south of Newmont’s Oberon Deposit

Click here for the full ASX release


This article includes content from Prodigy Gold, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here

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