6 Mar 2013 07:00
Wolf Minerals Limited
("Wolf" or "the Company")(ASX: WLF AIM: WLFE)
Award of Conditional £75 million EPC Contract
Wolf Minerals Limited (ASX:WLF, AIM:WLFE) is pleased to announce that it has awarded a £75 million (A$111 million1) EPC contract (the "Contract") for the Hemerdon tungsten and tin project to GR Engineering Services Limited (ASX:GNG) ("GR Engineering").
The fixed price, fixed term Engineer Procure Construct ("EPC") Contract is for the design, construction and commissioning of a 3Mtpa tungsten and tin mineral processing plant plus associated infrastructure, forming the key component of the Hemerdon project.
The formal commencement date for the project work under the Contract will be advised by Wolf to GR Engineering upon the satisfaction of the conditions precedent which form part of the financing arrangements for the project.
The EPC contract with GR Engineering compares very well with the Definitive Feasibility Study (DFS) estimate announced in May 2011, which allowed £77 million (A$114 million1) for the contract scope.
The Contract term is 24 months from the commencement date.
Commenting on the Contract award, Wolf Minerals Managing Director, Humphrey Hale said:
"Wolf is very pleased to continue working with GR Engineering to develop the Hemerdon Project as we have established a good working relationship over the past 3 years. This is a major achievement for the project team as the EPC contract was tendered to the market and this result is in line with the Definitive Feasibility Study estimate announced in May 2011."
[1] Approximate values at a spot exchange rate of A$1.00:£0.67
About GR Engineering
GR Engineering Services Limited (ASX:GNG) is an engineering, consulting and contracting company specialising in fixed price engineering design and construction services to the resources and mineral processing industry. Founded in Perth, Western Australia in 2006, GR Engineering has rapidly grown through the completion of design and construction projects for a diverse range of clients, including global mining houses, mid-tier miners and junior developers undertaking their first project.
GR Engineering has undertaken feasibility studies for projects in over 20 countries. These studies play a key role in delivering organic growth opportunities through their conversion into design and construction projects. GR Engineering directly employs approximately 255 professional and support staff at its offices in Perth, Kalgoorlie and Brisbane in addition to its direct construction workforce and subcontractors.
For further details, please contact:
Wolf Minerals Limited Humphrey Hale
| +61 8 6364 3776 |
Investec Chris Sim/Neil Elliot | +44 (0) 20 7597 5970
|
Newgate Threadneedle Beth Harris/Graham Herring | +44 (0) 20 7653 9850 |
About Wolf Minerals
Wolf Mineral is an ASX listed and AIM listed specialty metals company focused on developing the world class Hemerdon tungsten and tin project, in Devon, in the south-west of the UK. The Company holds an option over 100% of the Hemerdon project, which the Directors consider to be one of the largest undeveloped tungsten and tin resources in the western world. It is ranked as the fourth largest tungsten deposit in the world in terms of contained tungsten metal, by The British Geological Survey. The Company aims to develop the project into a large scale, open pit mining operation, which will position it as a world class tungsten and tin producer. Wolf released a positive Definitive Feasibility Study for the Hemerdon project in 2011, and it has updated planning permission for mining until 2021.