(Adds details of JV, background)
March 12 (Reuters) - Australia's top gold miner Newcrest Mining Ltd NCM.AX on Tuesday said it signed an exploration agreement for a joint venture with London-listed Greatland Gold Plc GGPL.L .
The joint venture comes a day after Newcrest announced it will buy a 70 percent interest in the Red Chris copper and gold mine in Canada from Imperial Metals Corp III.TO for $806.5 million. joint venture is for Greatland Gold's Havieron prospect in Western Australia's Paterson region, Newcrest said in a statement. Rio Tinto (LON:RIO) Ltd RIO.AX recently discovered some copper and gold in the Paterson.
Newcrest, which will maintain a majority interest in the joint venture, will be the manager of the mining programme during the farm-in period with the option to earn up to a 70 percent stake by spending up to $65 million over a six-year period after an initial investment of $5 million, it said.
Newcrest intends to process any ore from the Havieron site at their nearby Telfer mine, the company said.
"Greatland Gold's exploration to date has intersected significant mineralisation (nearby) Telfer's extensive infrastructure and processing capacity," Newcrest Chief Development Officer Michael Nossal said in the statement.
The agreement comes at a time of wider consolidation in the gold industry as miners around the globe aim to bolster shrinking reserves to boost growth and take advantage of rising prices.