Tag Archives: Macmahon Holdings

Macmahon eyes GBF Underground Mining acquisition

Explosives and blasting, Mining equipment, Mining mergers and acquisitions, Mining services, , , ,

ASX-listed Macmahon Holdings has, following market speculation, confirmed it is in discussions with GBF Underground Mining Co (GBF) in relation to a potential acquisition of the contractor.

Macmahon said it has not yet agreed terms or entered into binding purchase documentation for any acquisition, but did say, if acquisition terms are agreed, any consideration would be payable through cash and debt facilities.

“Macmahon will provide a further update if binding arrangements are entered into in relation to GBF,” it said.

GBF was founded in 1988 in the Western Australian Goldfields as a locally-owned and operated private underground mining contractor and continues to have a strong presence in the Western Australian Goldfields.

GBF has worked on a number of projects in the region, including Doray Minerals’ Andy Well project, Gold Fields Australia’s Belleisle mine (part of St Ives), Newcrest Mining’s Mount Marion mine and LaMancha Resources’ Frogs Legs project.

Shortly after this announcement, Orminex, which has a strategic alliance with GBF under the Mineral Ventures Model, came out with its own statement.

The Mineral Ventures Model the two companies are involved in provides capital and mining service solutions to suitable near-term production gold projects. The two are currently developing the Comet Vale mine, have recently acquired the high-grade Penny’s Find gold mine near Kalgoorlie, Western Australia, and continue to assess a number of other potential mineral venture opportunities, Orminex said.

Orminex Executive Chairman, Daryl Henthorn, said GBF had already advised Orminex that the operation of the strategic alliance will continue, irrespective of whether a transaction is finalised in relation to GBF. “It’s business as normal,” he said.

Macmahon to go underground with AngloGold, IGO at Tropicana gold mine

Mine operation news, Mine shafts and equipment, Mineral project development, Mining project news, Mining services, Precious metals, , , , , ,

ASX-listed Macmahon Holdings says it has been issued a Notice of Award by AngloGold Ashanti, its client at the Tropicana gold mine in Western Australia, for the development of the new Boston Shaker underground mine.

Tropicana, a joint venture between AngloGold (70% and manager) and Independence Group (IGO, 30%), is already Macmahon’s largest mining contract in Australia.

The addition of the Boston Shaker underground work is worth approximately A$170 million ($121 million) over five years, according to Macmahon, which said it expected to commence work in May with contract documentation finalised by the parties in the coming weeks.

Capital expenditure for the underground works is estimated to be approximately A$30 million, and will be primarily spread across the first three years, Macmahon said.

The development of the Boston Shaker underground mine will enable Tropicana gold production to be maintained at between 450,000-500,000 oz/y of gold over the five years to and including the 2023 financial year, AngloGold and Independence Group said. It is expected to contribute 100,000 oz/y to the operation, with first gold expected during the September 2020 quarter. The feasibility study estimated a capital cost for the project of A$105 million.

Macmahon’s Chief Executive Officer, Michael Finnegan, said: “We are excited that our long-term alliance partnership with AngloGold Ashanti and Independence Group has grown to also include its new underground development at Tropicana, where we have been operating the surface mining since 2012.

“This contract win is a major step towards our strategic goal of growing our underground business and capitalising on the increased level of underground opportunities with existing and potential new clients.”