MACA signs MOU for $306m contract

MACA has signed a memorandum of understanding for a $US220 million ($306 million) mining contract for Emerald Resources planned gold project in Cambodia.

Under the deal, Welshpool-based Maca will supply equipment and mining services to Emerald at the Okvau project over seven years, with an option to extend.

The two companies have agreed on all material terms, conditions, schedules and rates within a draft contract subject to a final investment decision.

The Okvau project has a development cost of $US98 million, according to a definitive feasibility study.

Emerald had been aiming to start construction by the end of 2018 but has not yet reached that point.

In an update released today, it said power lines to supply grid power were significantly advanced and road access negotiations were nearing completion.

The company added that it was in negotiations with a number of potential financiers.

Maca managing director Chris Tuckwell said the Okvau development was highly robust.

“Maca will also apply the experience we gained in establishing both a foreign subsidiary and starting a new mine whilst working in Brazil over the last four years,” Mr Tuckwell said.

Emerald managing director Morgan Hart said the company was looking forward to continue a working relationship that has spanned over 20 years.

Emerald is chaired by Simon Lee and its board includes MACA founder and director Ross Williams.

The contract would be MACA’s biggest since it secured a $700 million mining services contract at Carabella Resources’ Bluff coal project in Queensland in August.

Maca shares were down 0.51 per cent to trade at 99 cents each at the close of trade.