As Develop starts underground work at Bellevue Gold’s Bellevue Mine in Western Australia, it is bolstering its contract mining resources through a planned acquisition of Premium Group.
The Premium Group is a well-established provider of specialist mining personnel and equipment to the underground mining industry, according to Develop.
The two parties have entered into a letter of intent (LOI) pursuant to which Develop has agreed to acquire Premium Mining & Civil Pty Ltd and Premium Mining Personnel Pty Ltd (together, the Premium Group) for total consideration of A$7.46 ($5.3 million) million less net debt, to be satisfied by A$300,000 in cash and the balance in Develop shares.
Subject to shareholder and regulatory approvals, Develop said the acquisition would bolster its capabilities in providing underground expertise and equipment, while helping it achieve its goals as a mine owner/developer and “mining services business partner”.
Meanwhile at Bellevue Gold the company said it had started underground work at the Bellevue Mine, in line with the terms of the agreement signed last month (pictured).
Under the contract, Develop’s Underground Services division will undertake construction, development and production activities at the underground mine as part of an agreement valued at circa-A$400 million.
On this milestone, Develop Managing Director, Bill Beament, said: “We have established a world-class team of highly experienced underground mining specialists. Our team includes leading managers in their respective areas and an enviable group of underground mining and maintenance personnel, backed up by the latest mobile equipment.
“Our people, combined with the outstanding management team at Bellevue, will ensure we maximise the huge opportunity offered by the high-grade Bellevue orebody.”
Last week, Develop announced it had completed its acquisition of the Woodlawn zinc-copper mine in New South Wales, bringing with it an underground mine and new processing plant/site infrastructure.