Zenith to build 15MW power station

Belmont-based Zenith Energy has signed a power purchase agreement to build a 15-megawatt power station at Gascoyne Resources’ Dalgaranga gold project.

Zenith has secured a build, own and operate agreement for six years, with the plant expected to be in supply by mid next year, and Gascoyne able extend the contract for a further four years.

The power station will use gas-fuelled generators.

The agreement follows the recent announcement of Zenith as the preferred contractor for a 62MW power station at Newmont’s Tanami gold mine.

The company said its build, own and operate output would be 125MW following completion of the new station.

Zenith managing director Hamish Moffat said the company was pleased to secure another contract.

“We are delighted to have been awarded this PPA by Gascoyne and look forward to working with the Gascoyne team to deliver a world-class power supply solution to the Dalgaranga gold project which will serve them well for many years to come,” he said.

Zenith shares finished up 4 per cent at 75 cents.

The company has registered significant growth in its share price since mid-August when it was trading at around 45 cents.

Zenith was advised on the transaction by law firm Grondal Bruining.

Managing director James Bruining, senior associate Kylie Morrell and special counsel Yvonne Jansen worked on the deal.