GR wins $36m contract with Auctus

Perth-based GR Engineering Services has won a $36 million contract to design and build a processing facility in Queensland for private equity-backed Auctus Resources.

Auctus is a wholly-owned subsidiary of Auctus Chillagoe, which is owned by global private equity group Denham Capital.

Under the engineering, procurement and construction contract, GR Engineering will design and construct a 500,000 tonne per annum zinc, lead, copper and gold concentrator facility at Auctus’s Mungana zinc-copper project.

Work under the contract will begin immediately, with completion expected in April next year.

“We are looking forward to progressing the Mungana project construction phase with our new partner GR Engineering,” Auctus chairman Steve Murdoch said.

“We selected GR Engineering on the basis of it having a strong history in completing base metal concentrators on time, budget and achieving required performance criteria.”

GR Engineering managing director Geoff Jones said the company was pleased to have established a relationship with Auctus.

“We are seeking to increase our presence in Queensland, where we are actively pursuing several contracting opportunities,” Mr Jones said.

“The award of this contract is a positive step in the successful implementation of this market strategy.”

Auctus took ownership of the Mungana project in October last year, after acquiring liquidated Atherton Resources for $56 million.

GR Engineering shares were 4.4 per cent higher at $1.17 each at 10:15am.