- Bellevue Gold (BGL) awards an engineering, procurement and construction (EPC) contract for its processing plant to GR Engineering Services, valued at $87.8 million
- The company says the contract award is another key step in its project development strategy and further insulates the company against rising costs
- Bellevue can pay up to $7.5 million of the contract price to GRES in Bellevue shares, aligning GRES with the project and reducing Bellevue’s pre-production cash funding requirement
- Following the completion of the environmental review process, BGL says it’s on track for production in the second half of next year
- Shares in Bellevue Gold are up 3.73 per cent, trading at 69.5 cents as of 1:48 pm AEST
Bellevue Gold (BGL) has awarded an engineering, procurement and construction (EPC) contract for its processing plant to GR Engineering Services (GRES).
The company said the contract award, valued at $87.8 million, is another key step in its project development strategy and further insulates the company against rising costs.
As part of the contract, Bellevue can pay up to $7.5 million of the contract price to GRES in Bellevue shares, aligning GRES with the project and reducing Bellevue’s pre-production cash funding requirement.
The contract also signifies the last of the large capital expenditure items on the pathway to production, meaning 90 per cent of the project’s pre-production expenditure is locked in either via contracts or tenders.
Bellevue Managing Director Steve Parsons said the appointment of GRES ticked another key box on the path to production and cashflow.
“The appointment … means we have yet another tier-one contractor helping ensure we meet all our operating and financial targets,” Mr Parsons said.
“GRES knows the Bellevue project well, having been involved in the early studies (and) are extremely experienced in designing and building gold plants in WA.
“Their readiness to accept Bellevue shares as part-payment is a strong vote of confidence in our project and the outlook for our company.”
The processing plant had been designed so that throughput can be expanded to 1.2 million tonnes per annum at no additional expense, allowing for ongoing organic growth at the project.
Additionally, the company has been advised by the Environmental Protection Authority that it has successfully completed the environmental review process, ensuring it remains on track for production in the second half of next year.
Shares in Bellevue Gold were up 3.73 per cent, trading at 69.5 cents as of 1:48 pm AEST.