- Perenti Global’s (PRN) subsidiary, Barminco, has received a letter of intent from Newcrest Mining (NCM) for the development of an underground exploration decline at the Red Chris Project in Canada
- The letter of intent is for a scope of works, including mobilisation and site establishment activities, and development of a 3.5-kilometre underground exploration decline
- While mobilisation activities take place over the coming weeks, both parties will work towards finalising contract documentation ahead of the start of ground activities in the middle of the year
- Perenti says it expects the contract will generate around $38 million over 16 months
- PRN shares are up 2.76 per cent, trading at $1.12
Perenti Global’s (PRN) subsidiary, Barminco, has received a letter of intent from Newcrest Mining (NCM) for the development of an underground exploration decline at the Red Chris Project in Canada.
The Red Chris Project is a 70:30 joint venture between Newcrest and Imperial Metals, located 1700 kilometres north of Vancouver.
Newcrest has issued a letter of intent to Barminco for a scope of works, including mobilisation and site establishment activities and development of a 3.5-kilometre underground exploration decline.
The company says the decline is an essential first stage of works that will provide a platform for future underground exploration activities, which will also be used to support access to the potential block cave workings.
While mobilisation activities take place over the coming weeks, both parties will work towards finalising contract documentation ahead of the start of ground activities in the middle of the year.
“Geographic expansion has been a key focus of our 2025 strategy and this early-stage work at Red Chris builds on our regional growth capabilities after commencing in North America just over a year ago,” said Perenti Managing Director and Chief Executive Officer Mark Norwell.
“The underground exploration decline works are a significant opportunity and puts the company in a strong position to access the much wider scope of works associated with the potential block cave development that Newcrest aims to progress towards in the coming years.”
“This project fits with our strategy as we continue to pursue high quality growth opportunities within attractive mining jurisdictions, partnering with top-tier producers holding multi-mine portfolios and long-life, expandable assets.”
Perenti says it expects the contract will generate around $38 million over 16 months.
Perenti shares are up 2.76 per cent, trading at $1.12 at 11:30 am AEST.