4th Nov 2024 11:45
(Alliance News) - ACG Metals Ltd on Monday said that it has signed an engineering, procurement and construction contract with Gap Insaat, Calik Holding's construction subsidiary.
The firm, which is focused on the critical metals industry, said that Gap Insaat will provide the engineering, procurement and construction for the brownfield sulphide expansion of the Gediktepe mine in Turkey.
This will include related infrastructure facilities and earthworks at ACG's Gediktepe mine.
The deal is a fixed price turnkey contract for USD145 million, which will be funded by oxide cash flows and external debt covering all works, materials and equipment.
"The relationship and trust built over the past months and the experience GAP has in their team provides confidence in the execution of this project. This partnership further aligns us with our key partner and shareholder Calik Holdings," said Chief Executive Officer Artem Volynets.
"The construction of the sulphide plant will be a significant milestone in our transition to becoming a leading copper company on the London Stock Exchange from 2026. Furthermore, by signing a fixed price contract with a partner whose team has built the last three flotation plants in the country, we have significantly reduced capex and execution risk in our financial forecasting. We look forward to updating shareholders on key milestones of development at the Gediktepe mine."
Shares in ACG Metals were flat at USD5.00 each in London on Monday morning.
By Holly Beveridge, Alliance News senior reporter
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