Frontier Resources (ASX: FNT) has been granted a trading halt pending an announcement on the key Newcrest Mining (ASX: NCM) farm in to the Mt Andewa gold porphyry project in New Britain, Papua New Guinea.
While it is not known if Newcrest will commit to taking up a 60% interest in Mt Andewa, confirmation that it is doing so will be a major catalyst for Frontier’s shares.
Newcrest can earn the stake in the project by spending A$15.25 million over 4 years from the beginning of this year.
It also has the option to earn a 60% stake in the adjacent Schrader exploration area by spending a further A$4 million.
It will also have the option to increase its stake in the project by an additional 12% by paying Frontier a payment of 12% of the ore reserve gold ounces (at US$46 per ounce) specified in any subsequent feasibility study to develop Mt Andewa and/or Schrader.
Mt Andewa and Mt Schrader are 150 kilometres and 180 kilometres west of the port of Kimbe, the capital of West New Britain Province. The areas are accessible by barge, boat, helicopter and locally logging tracks.
The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Monday 18th June.
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