GR Engineering has signed an MoU for the engineering, procurement, and construction (EPC) of a new minerals processing facility at Mutiny Gold’s Deflector mine.
According to the miner the EPC contract will be a Guaranteed Maximum Price-style contract with provision for sharing cost under-runs.
The MoU allows GR Engineering to also undertake pre-approved preliminary work and recover invoiced expenditure and commitments in relation to that work if the MoU is terminated.
“In order to bring Deflector into the earliest possible production, it is intended to allow preliminary work to continue on the project while some of the final approval conditions are completed and the terms of the EPC contract are negotiated,” Mutiny said in a company statement.
The current plant design and throughput rate is based on an underground production rate of around 380 000 tonnes per annum of primary ore.
The plant has been relocated to be adjacent to the Deflector mine site, further reducing haulage and power distribution costs.
A formal valuation of the contract was not given.
This agreement is the latest milestone for the miner, and follows receipt of several indicative non-binding project finance offers and its resultant short-listing of a number of major Australian and global banks for the Deflector mine’s project financing.