- Develop Global (DVP) begins underground work at Bellevue Gold’s (BGL) Bellevue Mine in Western Australia
- Under a contract signed by the two companies, Develop’s underground services division will take on construction, development, and production activities at the underground mine
- Additionally, Develop has penned a letter of intent to acquire the Premium Group for $7.46 million, less net debt
- Develop says the acquisition will bolster its capabilities in providing underground expertise and equipment, which are said to be in extremely high demand
- DVP shares are up 6.78 per cent and trading at $2.52, while BGL is up 4 per cent to trade at 91 cents at midday AEST
Develop Global (DVP) has started underground work at Bellevue Gold’s (BGL) Bellevue Mine in Western Australia.
Under a contract signed by the two companies, Develop’s underground services division will take on construction, development, and production activities at the underground mine.
“We have established a world-class team of highly experienced underground mining specialists,” Develop Managing Director Bill Beament said.
“Our people, combined with the outstanding management team at Bellevue, will ensure we maximise the huge opportunity offered by the high-grade Bellevue orebody.”
Additionally, Develop has penned a letter of intent (LOI) to acquire the Premium Group for $7.46 million less net debt. The group is made up of Premium Mining & Civil and Premium Mining Personnel, and provides specialist mining personnel and equipment to the underground mining industry.
The purchase will be made through $300,000 in cash, with the balance transferred in Develop shares.
Under the LOI, the parties have agreed to negotiate and enter a formal share sale agreement to formalise the acquisition.
As outlined in the contract, $3.5 million in value of the equity consideration will be subject to voluntary escrow for 12 months, with the balance of the equity consideration to be subject to voluntary escrow for two years.
Due to Mr Beament being a minority shareholder of Premium Mining Personnel, he will receive around 10 per cent of the total consideration for the acquisition.
Develop said the acquisition will bolster its capabilities in providing underground expertise and equipment, which the company said are in extremely high demand.
Develop shares were up 6.78 per cent and trading at $2.52, while Bellevue Gold is up 4 per cent to trade at 91 cents at midday AEST.