Emerald contracts MACA for $365m

Emerald Resources has moved closer to developing its Okvau gold project in Cambodia after signing a $US230 million ($A365 million) mining contract with MACA.

It follows Emerald’s recent $75 million capital raising and completion of a $US60 million ($A95 million) loan with Sprott Private Wealth.

Under the contract, MACA will supply earthmoving equipment and conduct mining services at the Okvau site, including site preparation, drill and blast, load and haul works, and site maintenance.

MACA said it would utilise 100-tonne class dump trucks to carry out the works, due to begin in October.

The initial contract term is seven years, with options to extend.

It follows a memorandum of understanding executed between MACA and Emerald in January last year.

Both companies had recently finalised the project mining schedule, Emerald managing director Morgan Hart said.

Emerald expects first gold production by the second quarter of 2021.

Its shares were down 2.63 per cent to 3.7 cents per share at 1pm AEDT.

MACA shares were down 1.47 per cent to 67 cents per share at 1:30pm AEDT.