27/11/2014 - 11:51

Sirius names tenderers for Nova

27/11/2014 - 11:51

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Sirius Resources has named the preferred contractors for various works at its $473 million Nova nickel project near Norseman, however contract values have not been disclosed as final terms are yet to be completed.

Sirius names tenderers for Nova
Sirius managing director Mark Bennett.

Sirius Resources has named the preferred contractors for various works at its $473 million Nova nickel project near Norseman, however contract values have not been disclosed as final terms are yet to be completed.

In a statement today, the Balcatta-based explorer said it had chosen RJ Vincent to construct an aerodrome and access road at Nova.

The aerodrome will comprise a two-kilometre sealed strip with a taxiway and apron capable of taking jet aircraft, while construction of the access road will involve laying down a 35km, two-lane sealed road that will link the Nova mine site to the Eyre Highway.

Perth-based Watpac Civil & Mining has been nominated as the preferred tenderer to build a tailings storage facility at Nova, while mining contractor Barminco Holdings has been selected for excavation work.

Barminco has also been offered a subsequent three-year underground mining contract.

Sirius announced it had also selected Kerman Contracting to procure, transport and construct an accommodation village at Nova.

It has paid a holding fee for a second-hand 500-person camp in Queensland, which will be relocated to Nova in January.

Meanwhile, the company said its project management plan for the Nova project had been approved by Department of Mines and Petroleum and construction remained on track for a January start, assuming it receives the outstanding approvals and permits.

“Sirius has also progressed to detailed negotiations with a number of parties for an initial offtake agreement in respect of about half of the planned nickel concentrate production for three years as well as a copper offtake agreement for all other copper concentrate production over the same period,” Sirius managing director Mark Bennett said.

Mr Bennett said the company planned to finalise at least one offtake agreement in the near future.

In a definitive feasibility study for the project released in July, Nova said the mine would generate $4.5 billion in revenue and net cash flow of $2.7 billion over an initial 10-year life.

Shares in Sirius were down 2.8 per cent to $2.75 per share at 11:45am.

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