Capital is well on the way to securing a suitable fleet to carry out the open-pit waste mining contract at Centamin’s Sukari gold mine, with additional trucks recently arriving in Egypt and payments “significantly progressed” for all major long lead equipment required to service the operation.
Equity proceeds from the recent $40 million share placing were received in late December 2020, facilitating these further payments, according to Capital.
The 120 Mt open-pit waste mining contract at Sukari will see Capital provide load and haul and ancillary services over a period of four years. At the same time, the existing drilling contract at Sukari has been extended to December 31, 2024, (from September 30, 2023) and expanded by nine additional blasthole rigs, bringing the rigs operating at Sukari to 24 in total.
Included in the long lead items are 17 Cat 785 dump trucks, seven blasthole drill rigs, three excavators, and all major ancillary support equipment including dozers, graders and water trucks. Capital said additional trucks had recently arrived in Egypt, supplementing the initial truck fleet that arrived during the December quarter of 2020.
Capital also said it has made substantial progress on several of the debt facilities contemplated in the capital raising prospectus related to the Sukari contract including:
- Executing the $2.6 million vendor finance agreement with Epiroc with full draw down against the purchase of three new blasthole rigs;
- Fully drawing down on the remaining tranches of the $10 million Macquarie facility following finalisation of the Sukari contracts and security registration in Egypt; and
- The committed and available vendor finance facility with Sandvik for $8.5 million is expected to be used over the course of the March quarter against the purchase of four new blasthole rigs.
Jamie Boyton, Capital Executive Chairman, said it was pleasing to note that site activity was progressing well with the continued expansion of its extensive on-site facilities, “further asset arrivals and the recruitment of key personnel to prepare for the commencement of preliminary mining activity in late Q1 (March quarter) as planned”.