Conquest Mining (ASX: CQT) has achieved an amicable agreement with Gold Fields Australasia to settle all disputed matters that have been under discussion between the companies as joint venture partners in the Mt Carlton Project in Queensland.
Highlights of this settlement include termination of the Joint Venture Exploration Agreement allowing Conquest to solely explore the full tenement area (approximately 1,000 km2) and gain full access to previous geological and exploration data collated by Gold Fields and support with its interpretation.
Gold Fields has passed to Conquest its position in a tenement block to the east of Conquest’s current tenement area (outside the JV area). The agreement is to increase the Net Smelter Royalty (NSR) due to Gold Fields from 1.8% to 2.5%.
Gold Fields have agreed to allow Conquest the option of deferring the first NSR payments for up to twelve months.
Commenting on the Agreements, which settle all matters between Conquest and Gold Fields, Conquest Chairman Rich Krasnoff said, “we are greatly pleased to have reached this amicable and comprehensive settlement of all matters with Gold Fields."
"As a result of this settlement, Gold Fields’ interests are fully aligned with Conquest’s, since they stand to benefit both through royalties from the Mt Carlton tenements, and as Conquest’s largest shareholder, from the development of the region," he added.
Tommy McKeith, Executive VP Exploration and Business Development, commented, “we are delighted that these issues have now been resolved and look forward to working with the new Conquest team to create value for all shareholders.”
Conquest and Gold Fields will terminate the JVA Agreement. At that point, Conquest will be free to explore anywhere within the Mt Carlton tenements, at its own discretion and is actively developing plans to do so.
Gold Fields will deliver all its existing geological and exploration data to Conquest in relation to the tenements and provide assistance and support in interpreting that information.
Separately, Gold Fields has agreed to pass to Conquest its position in the nearby Glenalpine tenements (east of Conquest’s current tenement position) that it currently has under application.
Conquest has agreed to pay to Gold Fields royalties at the revised rate of 2.5% NSR1, up from the 1.8% that formerly applied under historical Agreements between Conquest and Gold Fields (which pre-dated and were unrelated to the JVA).
Gold Fields has agreed to allow Conquest, at its discretion, to defer the initial NSR payments for up to twelve months. Should Conquest make this election, the outstanding amounts will accrue interest at commercial rates.