Zenith wins power supply extension

Zenith Energy will increase the capacity of a power station at one of Superior Gold’s operations in Western Australia after receiving a 52-month contract extension.

Superior Gold is based in Toronto and operates the Plutonic gold mine in WA through its Australian subsidiary, Billabong Gold.

Zenith has supplied power to the mine, located about 800 kilometres north east of Perth, since 2014.

Zenith, through its wholly owned subsidiary Zenith Pacific, will add a further 6 megawatts of installed capacity to the power station, increasing total capacity to 12MW.

The company said upon installation, its total build, own and operate (BOO) capacity will increase from around 226MW to more than 232MW.

Zenith Energy is currently in $150 million takeover with Pacific Equity Partners, under which the company will be bought for $1.01 per Zenith share.

Pacific-owned Elemental Infrastructure BidCo has proposed to acquire all of Zenith’s shares on issue.

Zenith directors had recommended shareholders vote in favour of the scheme.

Shares in the company were down 5.75 per cent to 82 cents at 1:50pm AEDT today.