Victorian copper explorer Rex Minerals has signed an agreement with Allmine Group subsidiary Arccon and a Chinese state-owned resources giant to negotiate a $US550 million engineering, construction and project finance deal for the Hillside copper-magnetite project in South Australia.
The non-binding memorandum of understanding announced yesterday sets out a framework for Rex, China Non Ferrous Metal Industry’s Foreign Engineering and Construction Co (NFC) and Perth-based Arccon to develop a binding quote for a turnkey engineering, procurement and construction deal.
NFC will also facilitate a binding finance offer from China’s Minsheng Bank Corporation, which is expected to be around $US550 million, or around 70 per cent of the cost of the EPC contract.
Rex Minerals said it would continue negotiations with a range of interested parties to secure the remaining project finance.
NFC will be the lead contractor for the EPC contract, Arccon said.
“They will complete detailed engineering design in China with assistance from Arccon to ensure compliance to Australian standards,” Arccon said in a statement.
A formal contract is expected to be finalised by the end of October.
At close of trade today, Allmine Group shares were steady at 3.6 cents.
