VDM closes in on $120 million contract

VDM Group's negotiations for a $120 million mine processing contract are in the mature stages, the company has told the ASX today.

VDM made the statement in response to a query as to why its shares had jumped from 17.5c on Thursday to 23c today.

"To date, negotiations have been held strictly confidential by the parties and the company has no knowledge of any breaches of this confidentiality requirement," VDM said.

VDM Group indicated a contract had not yet been signed, but one would be as soon as all terms and conditions had been agreed upon.

The project is for the processing and placement of 6.5 million cubic metres of rock as part of the infrastructure for a mine development.

The contract is over 15 months, and work will commence immediately upon signing.

It is one of a number of "significant tenders" that the company said were likely to be awarded in the second half of the financial year, which would underpin its 2010 turnover.