Entry into $36 million EPC Contract

Company News

GR Engineering Services Limited (ASX:GNG) (GR Engineering or Company) is pleased to announce the entry into an engineering, procurement and construction (EPC) contract (Contract) with Auctus Resources Pty Ltd (Auctus) for the design and construction of completion works associated with the 500,000 tonne per annum Mungana zinc, lead, copper and gold concentrator facility located at Chillagoe, Northern Queensland.

Work on this Contract, which will be carried out primarily through the Company’s Brisbane office, will commence immediately and is expected to be completed in April 2017.

Contract revenue is expected to be approximately $36 million, with half that revenue expected to report to HY17.

Commenting on the award, GR Engineering’s Managing Director, Geoff Jones said:

“GR Engineering looks forward to working with Auctus and to establishing a long term relationship with this first time client through the delivery of successful outcomes for the Mungana Project. We are seeking to increase our presence in Queensland, where we are actively pursuing several contracting opportunities. The award of this Contract is a positive step in the successful implementation of this market strategy.”

Auctus’ Executive Chairman, Steve Murdoch said:

“We are looking forward to progressing the Mungana Project construction phase with our new partner
GR Engineering. We selected GR Engineering on the basis of it having a strong history in completing base metal concentrators on time, budget and achieving required performance criteria.”

Category: Company News