Oro Verde (ASX:OVL) surprised friend and foe last year when it announced Newcrest (ASX:NCM) signed an earn-in agreement to earn a 75% stake in the Topacio gold project in Nicaragua. Newcrest can earn an initial stake of 51% by spending A$6.1M on exploration expenses at the property with an option to earn an additional 24% interest by spending an additional A$4.9M.
The Topacio project currently already has a NI43-101 resource estimate of 340,000 ounces of gold at an average grade of 3.9 g/t. Oro Verde can earn a 100% stake in the project by spending US$2M over 3 years (which will now be funded by Newcrest), make cash payments of US$240,000 and make one final payment of US$1.5M as well as providing a 2% NSR, or paying $1 per produced ounce of gold.
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