28/10/2013 - 09:19

GR Engineering wins $54m contract

28/10/2013 - 09:19

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GR Engineering Services has been appointed the preferred contractor for engineering procurement and construction works worth $54.6 million at MZI Resources' Keysbrook mineral sands project near Serpentine.

Drilling operations at MZI's Keysbrook operation south of Perth.

GR Engineering Services has been appointed the preferred contractor for engineering procurement and construction works worth $54.6 million at MZI Resources’ Keysbrook mineral sands project near Serpentine.

GR Engineering will design and construct the project concentrator, associated facilities and modifications to the nearby mineral seperation plant owned by Doral.

"GR Engineering’s mineral sands experience, coupled with its local presence and expertise, leave it well placed to deliver high-quality project outcomes," GR Engineering managing director Geoff Jones said.

The contract is subject to the satisfaction of conditions, including MZI securing financing for the project.

MZI told the market last week that one of the two lead arranging banks appointed to provide debt funding for Keysbrook had withdrawn from the process, in news the company described as disappointing and unexpected.

The company earlier this month secured a $US41.5 million project funding deal from international private equity group Resource Capital Fund for the Keysbrook project.

The Keysbrook project is expected to produce around 91,000 tonnes of product annually from 110,000t of dry heavy mineral concentrate.

MZI hopes to commence construction at Keysbrook later this year and achieve first production by late 2014.

GR Engineering shares were 1.4 per cent higher at 69.5 cents at 9:25AM WST.

 

 

 

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