Commodities
Home›Commodities›Mining›Newmont to earn control of Headwater's Jupiter gold pr…
Newmont to earn control of Headwater's Jupiter gold project in Nevada
Newmont will fund $30 million of exploration and require a prefeasibility study, with a pathway to boost its stake to 65% after additional spending.
Newmont has agreed to earn control of Headwater Gold’s Jupiter gold project in Nevada by covering exploration costs and completing a prefeasibility study, shortly after Headwater staked the ground, Mining.com reports.
Under the deal, Newmont will spend $30 million, or C$42 million, over three quarters of the 28 square kilometer Jupiter in Nye County, about 370 km southeast of Carson City. Headwater will manage the work, the companies said.
The funding model is designed to turn a newly staked prospect into Headwater’s third Newmont-backed Nevada project while shifting much of the early cost and risk of testing the target to Newmont. Headwater will earn exposure to multiple gold targets without primarily funding the initial exploration itself.
Newmont also laid out staged ownership terms, including earning an initial 51% stake by spending $10 million within four years, then increasing to 65% by spending an additional $20 million over the following three years. Reaching 75% would require a prefeasibility study supported by at least 1.5 million oz. of gold or gold equivalent, plus granting Headwater a 2% net smelter return royalty, with Headwater receiving a 10% management fee during the initial earn-in.
Latest closeGold $4,467.10 ▲1.9%