LNJV Gold Project
The Company owns 100% of the LNJV Gold Project which comprises of two large Exploration Permits (Waitekauri EP53469 and Owharoa EP54216) covering an area of 86km2, within the highly prospective Hauraki Goldfield. The project is located 110km south west of Auckland, near the township of Waihi on New Zealand’s north island. The Hauraki Goldfield has produced over 40,000,000 ounces of Au-Ag bullion from over 50 epithermal style deposits.
The LNJV Gold Project surround Heritage Gold’s New Talisman mining and exploration permits and abuts Oceana Gold’s Mine (Waihi) in the north east. The Permits are accessible via sealed roads, private tracks, public dirt roads and forestry tracks which give good access throughout the permit.
Laneway has entered into a Farm-in Agreement with Newcrest Mining in relation to these projects.
Key terms of the Agreement include:
Newcrest to solely fund two stages of Minimum Work Programs associated with the Permits, with the first stage forming a Minimum Commitment;
Laneway will be the Manager of the Project during the Earn-in period and will earn a Management Fee. At its election Newcrest may elect to become the Manager;
Upon completing both Minimum Work Programs for either Permit Newcrest has the right to earn 80% of the Project/Permit and will be named on title;
Following the Farm-In period, the parties may enter into a Joint Venture to jointly fund the future development of the Project in accordance with their equity position;
If Laneway elects not to fund the ongoing development of the Joint Venture after the Farm-in period, its interest will be diluted through a mutually agreed formula. If Laneway’s interest in the Project dilutes below 10% then it will convert to a Net Smelter Royalty (NSR) of 2%; and
Newcrest may elect to purchase the 1% NSR for $500,000.
Exploration activities commenced in August 2015 and are still on-going with a program for the 2016/17 financial year agreed between the two parties.