Frontier Resources (ASX: FNT) has as expected finalised the farm in by Newcrest Mining (ASX: NCM) to the Mt Andewa gold porphyry project in New Britain, Papua New Guinea.
This paves the way for exploration work to accelerate with Newcrest having the right to earn 60% in the permit by sole funding A$19.25 million of exploration expenditure by December 31, 2015.
The gold miner has also reimbursed Frontier A$1.915 million for actual exploration expenditure incurred since January 1, 2012, plus Frontier's drilling and equipment lease costs for 2012.
It also has the option to acquire an additional 12% stake in Mt Andewa prior to the mining decision.
Frontier has the option following Newcrest’s earn-in to elect to be deferred carried to completion of a Feasibility Study, repayable from 50% of mine profit.
Field crews have been mobilised to the area and both of Frontier’s large track mounted rigs will be used to complete the Phase one program of five 1000 metre holes as quickly as possible.
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