Good news day for Macmahon

Engineering contracting and services group MacMahon today announced it had been confirmed as the preferred proponent for the mining and processing contract at BHP Billiton's Jimblebar iron ore mine.

The news comes on the same day the company announced it had finalised a new $120 million banking facility with a consortium of banks.

The corporate banking arrangement replaces Macmahon's current $54 million facility with the ANZ, and includes BankWest, Nab, as well as the ANZ.

The new facility has a three-year $45 million core debt instrument, an expanded bank guarantee and working line of capital.

The new banking arrangements come on top of a $56 million equity raising last year and leave Macmahon well placed to pursue future growth, while at the same time operate within its gearing parameters.

The Jimblebar deal is the latest for Macmahon in the state's north-west after securing the contract for BHPB's new Orebody 18 mine in December 2005.

The proposed Macmahon deal at the Jimblebar open cut site, located 60 kilometers east of Newman, is for two years.