Macmahon Holdings Ltd has confirmed that it has received a letter of intent (LOI) in relation to the King of the Hills (KOTH) gold project being developed by Red 5 Ltd.
The KOTH project is a major open pit and underground gold deposit located in the eastern goldfields region of Western Australia, with a projected mine life of over 16 years.
Red 5 has commenced the construction of the camp and processing facilities on site and is planning for mining to commence in early 2022. First gold production is expected to occur in June 2022.
Following a detailed tender process for both the surface and underground mining activities, Red 5 has issued a LOI to Macmahon for a proposal combining both scopes of work. Under the LOI, the parties are working to finalise the documentation by which Macmahon will provide all surface and underground mining services to the project over a 5 year contract term, commencing in 1Q22.
Macmahon expects this documentation will be completed by June 2021 and that the contract will add over AUS$650 million to the company’s order book.
Macmahon’s CEO and Managing Director, Michael Finnegan, said: “We are delighted to be in advanced discussions with Red 5 for its King of the Hills gold project in Western Australia. We have a strategy to expand our presence across the mining services value chain, and this project highlights the benefits of being able to offer a combined surface and underground mining solution from the outset. We look forward to continuing our relationship with the Red 5 team and supporting their development of this important project.”
Read the article online at: https://www.globalminingreview.com/finance-business/10032021/macmahon-receives-loi-for-king-of-the-hills-gold-project/