Northern Minerals (ASX: NTU) has executed the EPC contract with Sinosteel MECC for the construction of the Browns Range Pilot Plant, less than three weeks after the MoU was signed. The contract is subject to the Final Investment Decision, expected in mid-Q1 2017.
Highlights
- Engineering, Procurement and Construction (EPC) contract signed in Beijing with Sinosteel Equipment & Engineering Co., Ltd. (Sinosteel MECC) for Browns Range Pilot Plant.
- As part of the EPC contract, Sinosteel MECC has agreed to defer 20% of payments for 24 months, with a right to convert into Northern Minerals Ordinary shares.
Australian heavy rare earths developer, Northern Minerals Limited (ASX: NTU) is pleased to announce that it has executed an Engineering, Procurement and Construction (EPC) contract with Sinosteel Equipment & Engineering Co., Ltd. (Sinosteel MECC), a subsidiary of Shenzen listed Sinosteel Engineering & Technology Co., Ltd. (Sinosteel ENTEC), for the delivery of the Browns Range Pilot Plant in northern Western Australia. The contract follows the announcement of a Memorandum of Understanding (MoU) on 23 November 2016.
Sinosteel MECC will be responsible for the engineering, procurement and construction of the 60,000tpa Browns Range Pilot Plant. Under the contract, the Pilot Plant modules will be fully constructed in the People’s Republic of China ( China) and then transported and installed on site in Australia. Sinosteel MECC will be the lead contractor on site with other Australian groups sub-contracting as required.
Under the contract, Sinosteel MECC has agreed to defer payments representing 20% of the contract value for a period of 24 months. Alternatively, Sinosteel MECC has the right, at its election, within nine months of practical completion, to convert the deferred payment amount into Ordinary Northern Minerals’ shares at a conversion price of the lower of 15 cents per share or the 20 day VWAP prior to election.
The EPC contract is subject to finance and a final investment decision (FID) by the Northern Minerals’ and Sinosteel’s Board, expected in mid-Q1 2017.
Northern Minerals’ Managing Director George Bauk congratulated both parties for executing the EPC contract in a short timeframe, coming less than three weeks after the signing of the MoU.
“The execution of the EPC contract is an important step with regards to securing financing for the Browns Range Pilot Plant. We are committed and focused towards the FID in mid-Q1 2017,” Mr Bauk said.
For further information:
George Bauk
Managing Director/CEO
Northern Minerals
+61 8 9481 2344
For media and broker enquiries
Andrew Rowell / Michael Cairnduff
Cannings Purple
+61 8 6314 6300
