PERTH (miningweekly.com) – Gold developer Emerald Resources has signed a memorandum of understanding (MoU) with fellow-listed MACA to supply equipment and contract mining services for the Okvau gold project, in Cambodia.
The MoU was subject to a final investment decision to develop the project, but the scope of work under the mining contract will include load, haul, drill and blast. The initial term of the contract is currently seven years, with an option to extend, and would see some $220-million in revenue for MACA.
Emerald on Wednesday told shareholders that it was in discussions with a number of potential financiers to help develop the Okvau project.
The completion of the financing will be subject to lender due diligence, formal documentation and credit approvals.
Meanwhile, the power line to supply grid power to the project is well advanced, and with the execution of an MoU expected shortly, the project is confirmed to have power availability by December this year.
Furthermore, negotiations for the construction of the access road were also nearing completion.
The Okvau project is expected to require a capital investment of $98-million to develop a two-million-tonne-a-year operation delivering about 106 000 oz of gold, over an initial mine life of seven years.