The Bellevue Mine in Western Australia, owned by Bellevue Gold, has begun underground work.
The underground mine will be constructed, developed, and produced by Develop’s Underground Services business under the terms of the contract.
According to the ASX Announcement, the deal is worth A$400 million and will last roughly four years.
“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,” said Develop Managing Director Bill Beament.
“Our people, combined with the outstanding management team at Bellevue, will ensure we maximise the huge opportunity offered by the high-grade Bellevue orebody”.
The company has also signed a letter of intent (LOI) to buy Premium Mining & Civil Pty Ltd and Premium Mining Personnel Pty Ltd (collectively, the Premium Group) for $7.46 million less net debt, with $300,000 in cash and the rest in Develop shares.
This acquisition strengthens Develop’s underground experience and equipment capabilities, both of which are in high demand and will be crucial in assisting Develop in achieving its goals as a mine owner/developer and mining services business partner.
To formalize the transaction, the parties have agreed to negotiate and enter into a formal share sale agreement, which will include usual terms and conditions.
The value of $3.5 million in equity consideration will be held in voluntary escrow for 12 months, with the remaining equity consideration held in voluntary escrow for 24 months.
The development of the equity consideration will be subject to the consent of the Develop shareholders.