Lycopodium secures $100m contract

Engineering services company Lycopodium has won a $100 million contract for work on FG Gold’s project in Sierra Leone, building on its relationship with the African gold hopeful.

ASX-listed Lycopodium was awarded the engineering, procurement and construction management services and supply contract for the process plant and associated non-process infrastructure.

The scope of work will be delivered at FG Gold’s Baomahun gold project in Sierra Leone in West Africa, which is under construction and expected to reach first gold pour in 2025.

But advancement of the project is dependent on FG Gold reaching financial close on the project, Lycopodium said in its ASX statement.

Lycopodium has been engaged at the project since 2021, after it delivered a definitive feasibility study followed by front end engineering and design work.

FG Gold is a privately owned company focused on its Baomahun gold project, and is led by executive chairman Oliver Andrews. 

The services and supply contract is valued at $100 million, and work is expected to kick off in the first quarter of 2024.

“We are extremely pleased to have this opportunity to continue to work with FG Gold in the development of this exciting project, which is Sierra Leone’s first large-scale commercial gold mine and represents one of the largest deposits under development in Africa,” Lycopodium managing director Peter De Leo said.

Earlier this month, the contractor locked in a $19 million feasibility study and basic engineering contract from Canadian miner Barrick Gold Corporation for work on its copper mine in Zambia.

Lycopodium’s shares were trading up 4.97 per cent to $11.62 at 1.55PM AWST.