Hot Features
Premium
Register for streaming realtime charts, analysis tools, and prices.
Contract awarded to finalise project design, source vendor financing and provide EPC management for Matala Gold Mine, Zambia
Alecto Minerals (LSE:ALO), the Africa-focused gold and base metal exploration and development Company, has announced that, following the Company’s recent exciting acquisition of the historic Matala and Dunrobin gold mines in Zambia and as part of the Board’s determination to move quickly towards becoming a gold producer, Alecto has entered into an agreement with PenMin, a South African based consultancy group which has extensive knowledge of Matala and Dunrobin, to assist in delivering the next stage of Alecto’s Matala Gold project.
Pursuant to the agreement, PenMin will, inter alia, assist the Company in:
· Updating and finalising the historic Definitive Feasibility Study (‘DFS’) prepared by Coffey Mining and a works programme for Matala, in order to secure the two main contracts required to bring Matala into future production; namely the mining contract and the contract for the supply and operation of the plant;
· Preparing the Design Build and Operate (DBO) contract (to FIDIC Gold Book standards) for the Project. This will exclude the mining elements of the Project, but will include the supply of process plant and mining infrastructure components such as workshops, wellfield, earthworks and roads etc;
· Preparing the mining contract to secure a mining contractor. Engagement of a mining contractor, who will finance the cost of supplying and operating the mine fleet, will serve to reduce the initial capital required to commence mining operations at Matala;
· Seeking to secure vendor financing for the supply of the processing plant, a major capex requirement for bringing the Project in to production;
· Ensuring that all the relevant permits and approvals are in place to commence production, which will include securing the relevant insurance for the Project; and
· Management of the master schedule for Matala.
Subject to successfully completing the above workstreams and on the commencement of operations, PenMin will then adopt a client representative project management role, which will include oversight of all aspects of the Project except for the Company’s responsibilities of geology/resource management and mine planning, government interaction, environmental and social management, security management and financial controls.
Mark Jones, CEO of Alecto, commented:
“Following the completion of the acquisition of Matala and Dunrobin, Alecto has got off to a flying start in preparing the Project. In partnership with PenMin and our largest shareholder, who via Digmin Group Pty Ltd provides experienced mining and infrastructure build contracting services, we have developed a clear roadmap of how we can rapidly move the Matala Project into production. Utilising the skills of our partners and leveraging the in-house experience of Alecto’s Board and personnel, we have a clear opportunity to deliver ahead of our initial expectations.
“We will continue to pursue our plans across the rest of Alecto’s portfolio, in particular the advancement of our strategy to deliver production from our 100% owned Kossanto East Gold Project in Mali through co-operation with Desert Gold. Accordingly, we hope to be able to deliver production from two projects in the near to mid-term.
“This is an exciting time for Alecto and I truly hope that the value potential that can be created, even in these difficult times, will begin to be recognised by the market.”
