Pacific Energy in Regis power plant deal

Power generation firm Pacific Energy has won the bid to construct a 12 megawatt power station for Regis Resources' recently green-lighted Garden Well gold project.

Pacific Energy announced today that its subsidiary, Kalgoorlie Power Systems, had won a five-year electricity supply deal to build, own and maintain the power station at Regis' Garden Well mine.

Commercial terms of the contract were not disclosed.

"The signing of this new five-year contract to supply electricity to the Garden Well gold project expands the KPS total contracted capacity footprint to in excess of 150MW at 15 mine sites across Australia," Pacific Energy managing director Adam Boyd said.

The company said negotiations for a number of new electricity supply deals were in the advanced stage, and were expected to be signed shortly.

Regis gave the green light for the development of the Garden Well mine, located in the Duketon gold province near Laverton last week.

The company flagged annual gold production of 180,000 ounces, with life of mine cash operating costs of $555/oz.

It will be its second gold mine operating in the Duketon province, with its Moolart Well mine having been in production since September last year.

At 11:52AM (WST) Pacific Energy shares were up five per cent at 42 cents, while Regis' had slipped just under half a percent, to $2.49.