GR Engineering Services Limited (ASX: GNG) (GR Engineering) is pleased to announce that it has been awarded a conditional engineering, procurement and construction contract (Contract) with Galena Mining Limited's (G1A.ASX) (Galena) subsidiary, Abra Mining Pty Ltd, for the supply of a 1.2 million tonne per annum lead sulphide floatation process plant and ancillary infrastructure for the Abra Base Metals Project located in Western Australia.
The Contract sum is $74 million and will be undertaken on a guaranteed maximum price basis. The Contract remains subject to GR Engineering being issued with a full notice to proceed, which is dependent on Abra Mining Pty achieving financial close on its proposed project financing facilities.
GR Engineering has commenced early engineering works up to an agreed capped amount.
Commenting on the award of the Contract, Mr Geoff Jones, Managing Director said:
"We are pleased to have been awarded the Contract for the delivery of the Abra Base Metals Project, which has followed GR Engineering's involvement to date in the project's feasibility study and preliminary design work. We look forward to working with the Galena team to safely and successfully deliver the Abra Base Metals Project."
About GR Engineering
GR Engineering Services Limited (ASX: GNG) is an ASX listed engineering design and construction contractor specialising in fixed price engineering design and construction services to the resources and mineral processing industry.
GR Engineering has successfully completed the engineering, design and construction of projects for a diverse range of clients, including global mining houses, mid-tier miners and junior developers undertaking their first project. Traditionally an EPC contractor, GR Engineering also has the ability to contract through a variety of models, including EPCM and hybrid contracting arrangements.
GR Engineering also has a long history of providing a diverse range of process engineering consulting services, including feasibility study preparation and management, process design and peer review engagements. These services have been delivered for projects globally and play a key role in delivering organic growth opportunities through design and construction project execution.
The Company also has a presence in the hydrocarbons industry via its wholly owned subsidiary, Upstream Production Solutions. Upstream Production Solutions is a leading provider of operations and maintenance services to the Australian and South East Asian oil and gas industry.
As a group, GR Engineering employs more than 400 professional and support staff throughout Australia and internationally, in addition to a direct construction workforce and subcontracted personnel.