Earn-In Agreement Definicion

The agreement should also define the accounting assumptions that will be used in the future. If Newcrest decides to continue with Earn-in Level 2 and pay $650,000 in cash to GFG, Newcrest`s stake in the project will increase to 51% and it will be entitled to earn an additional 4% (55% in total) of the project over a two-year period by funding the provision of a positive preliminary economic assessment. in accordance with national instrument 43-101. If Newcrest decides to exercise the Earn-in option, it will pay $500,000 in cash to GFG and will be entitled to earn 49% of the project over a four-year period by issuing an additional $14.0 million with an annual exploration cost of at least $1.0 million. .