10/11/2015 - 10:45

GR gets to work on Doray's Deflector

10/11/2015 - 10:45

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Doray Minerals has finalised a $51 million contract with GR Engineering Services for work at its Deflector gold project in the Murchison region, which is now fully funded and on-track for production by mid-2016.

Ongoing work at Doray's Deflector gold project in the Murchison region.

Doray Minerals has finalised a $51 million contract with GR Engineering Services for work at its Deflector gold project in the Murchison region, which is now fully funded and on-track for production by mid-2016.

GR has been hired to design, construct and commission a 480,000 tonne per annum gold and copper mineral processing plant and associated infrastructure at Deflector, on top of civil works which began in August.

GR expects the plant to be completed in the second half of next year, as Doray plans production to commence mid-next year.

“The award of these works is the culmination of a longstanding relationship with Doray and GR Engineering’s in-depth knowledge of the Deflector project,” GR managing director Geoff Jones said.

In a statement today, Doray said it had finalised documentation with Westpac to allow for drawdown of up to $90 million to fund construction and development of Deflector.

It also has no further debt repayments to make until September next year, coinciding with the first quarter production at Deflector.

PCF Capital Group acted as sole financial adviser to Doray.

Doray shares were 0.9 per cent lower to 54 cents, while GR shares were unchanged at 87 cents each at 10:45am.

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