Farm In Signed on Firetower Gold Project in Tas...
11 October 2011
GREATLAND GOLD PLC
Farm In Signed on Firetower Gold Project in Tasmania
Greatland Gold plc ("Greatland Gold" or "the Company") is pleased to announce
that it has executed a farm in agreement with Unity Mining Limited ("Unity
Mining") over the Company's Firetower Gold project in Tasmania.
The farm in agreement will allow Unity Mining to earn up to 75% of the Firetower
Gold project for expenditure of A$7m over a 5.5 year period.
Firetower Farm In / JV Agreement
Unity Mining is an Australian listed (ASX:UML) mining company that owns gold
mining and exploration interests, including the producing Henty Gold Mine in
Tasmania. Unity employs an experienced team of mining personnel who will take
the leading role as Operator from the Company and execute exploration at the
Firetower Gold project. Exploration efforts will initially be focussed on
drilling at the Firetower gold deposit.
The farm in agreement will cover the Firetower gold project which encompasses
the following Greatland licence interests extending over 264km² in Northern
Tasmania;
Firetower EL26/2004
Firetower East EL31/2004
Quamby Brook EL34/2007
Beulah EL02/2009
This agreement is in line with the Company's aim to farm out or joint venture
licence interests, to achieve greater risk and cost sharing in the development
of its portfolio of exploration interests. Furthermore, the agreement recognises
Greatland's expenditure on Firetower up to the joint venture of approximately
A$1.9m and introduces extensive local technical expertise.
Highlights
Unity Mining to spend A$2m within 30 months ("farm in period") to earn 51% of
the Firetower Gold project.
Unity Mining to spend a minimum amount of A$0.2m within 12 months and has the
right to withdraw from the farm in agreement after having spent the minimum
amount.
Once Unity Mining has earned its 51% interest on conclusion of the farm in
period, a joint venture shall be formed allowing Unity Mining to earn a further
24% over 36 months in return for a further A$5m investment.
Greatland can then elect to participate in the joint venture with costs shared
on a pro-rata basis to its 25% interest, or dilute its 25% interest or divest
itself.
Assuming participation, at the conclusion of the joint venture, Greatland will
be left with a 25% interest against which it would have contributed A$2.33m
including the pre-joint venture expenditure.
Should Unity wish to withdraw after earning its 51% interest then its stake can,
on Greatland election, be acquired for A$1.
In the event that either party reduces its joint venture interest below 10% it
will be deemed to have withdrawn and its interest will revert to a 1% net
smelter royalty on minerals produced by the Firetower gold project.
Corporate
Callum Baxter, CEO, commented: "This agreement with Unity Mining brings together
its proven expertise in exploration and development with one of our gold
projects in a region that has a track record of gold production.
We believe that management of the Firetower gold project by Unity Mining
strengthens its holdings in this prospective region of Tasmania. These holdings
include the nearby Henty Gold Mine, an advanced gold project which has produced
over 1m oz of gold in a 15 year period."
Further information can be found on both companies respective websites at
www.greatlandgold.com or www.unitymining.com.au.
Enquiries:
Greatland Gold plc
Callum Baxter
Tel  +44 (0)20 7099 5845
Email: Â info@greatlandgold.com
www.greatlandgold.com
Grant Thornton Corporate Finance
Gerry Beaney / Colin Aaronson
Tel  +44 (0)20 7383 5100
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(i) the releases contained herein are protected by copyright and
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(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Greatland Gold PLC via Thomson Reuters ONE
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