GR Engineering Services Limited (GNG.ASX) (GR Engineering) is pleased to announce that it has entered into an agreement with Keysbook Leucoxene Pty Limited, a wholly owned subsidiary of MZI Resources Limited (MZI.ASX) (MZI) for the engineering, procurement and construction of the Keysbrook Minerals Sands Project (Project) process plant and associated infrastructure (Contract).
Commencement of work under the Contract remains subject to the satisfaction of certain conditions precedent, predominantly associated with MZI’s financing and offtake arrangements. GR Engineering expects to be advised of a commencement date under the Contract in the current half.
GR Engineering’s work under contract includes the process engineering design and construction of the wet concentrator plant and associated infrastructure at Keysbrook, located 70km south of Perth, Western Australia and modifications to a minerals separation plant operated in Picton, Western Australia.
The Contract price is approximately $54.6 million, with the associated revenue expected to be realised over a period of 14 months from the commencement date.
Commenting on the award of the Contract, GR Engineering’s Managing Director, Mr Geoff Jones said:
“GR Engineering has developed a strong working relationship with MZI prior to entering into this Contract which leaves us well placed to execute the delivery of the Keysbrook Mineral Sands Project. The ability to complete early works has provided us with a detailed understanding of the Project and the requirements of its stakeholders. We look forward to continuing to work collaboratively with MZI to deliver safe, successful Project outcomes.”