4 November 2024
ACG METALS LIMITED
("ACG" or the
"Company")
Fixed Price Turnkey EPC
Contract Secured for Gediktepe Sulphide Expansion
ACG Metals Limited is pleased to
announce it has signed an engineering, procurement and construction
contract ("EPC") with Gap İnşaat Yatırım ve Dış Ticaret Anonim
Şirketi ("GAP INSAAT"), Çalık Holding's Istanbul headquartered
construction subsidiary, offering infrastructure and industrial
facility projects.
GAP INSAAT will provide the
engineering, procurement and construction for the brownfield
sulphide expansion of the Gediktepe Mine, including related
infrastructure facilities and earthworks ("Scope of Work") at ACG's
Gediktepe Mine in Türkiye. It will allow
for the mining and processing of sulphide ore in addition to the
oxide ore currently being mined and processed. The expansion
project targets annual production of up to 25kt copper equivalent
over an 11-year initial mine life.
The sulphide expansion project is a
straightforward brownfield development, drawing on over 10 years of
studies on the ore body and a proven process design. It benefits
from the oxide production's existing infrastructure and includes
the construction of a two-stage flotation process planta method
refined over centuries, along with earthworks for the waste,
tailings, and pond infrastructure.
This is a fixed price turnkey EPC
contract for $145 million, which will be funded by oxide cash flows
and external debt covering all works, materials and equipment, as
set out in the Competent Person's Report published within ACG's
prospectus, dated 7 August 2024.
Scope of Work
The EPC contract follows the
feasibility study dated 24 May 2023, which details the opportunity
for a sulphide expansion project, required infrastructure, and an
economic assessment. GAP INSAAT will execute on the planning,
design and engineering of the project, as well as the supply
procurement and material delivery, installation and commissioning.
The engineering services in the contract
have been subcontracted to NewPro Consulting & Engineering
Services, an Australian-based consulting and engineering firm
specialising in the mining industry, which has further defined the
Scope of Work and detailed the equipment purchase list needed with
the basic engineering finalised in early October 2024.
While planning, preparatory work,
the basic engineering and initial construction has started, the EPC
contract has been signed with the purchase of key long lead items
and key workstreams to start in January 2025. Completion of the
Scope of Works is expected by 18 January 2026. This includes the
dry commissioning, the ore commissioning and Product Ramp-up and
Water commissioning.
Artem Volynets, Chairman and CEO of ACG,
said:
"We
are pleased to partner with GAP
INSAAT, a well-respected local contractor for this EPC contract, as
we look to execute on our expansion strategy at the Gediktepe Mine.
The relationship and trust built over the past months and the
experience GAP has in their team provides confidence in the
execution of this project. This partnership further aligns us with
our key partner and shareholder Calik Holdings.
"The construction of the sulphide plant will be a significant
milestone in our transition to becoming a leading copper company on
the London Stock Exchange from 2026. Furthermore, by signing a
fixed price contract with a partner whose team has built the last
three flotation plants in the country, we have significantly
reduced capex and execution risk in our financial forecasting. We
look forward to updating shareholders on key milestones of
development at the Gediktepe Mine."
-
ENDS -
The person responsible for the
release of this information on behalf of the Company is Artem
Volynets, Chief Executive Officer.
For further information please
contact:
Palatine
acg@palatine-media.com
Communications Advisor
Conal Walsh / James Gilheany/ Kelsey
Traynor/ Richard Seed
About the Company
ACG is a company with a vision to
consolidate the critical metals industry, starting with the copper
sector. Through a series of roll-up acquisitions, ACG intends to
become a premier supplier of copper and other critical metals to
the western OEM supply chain, with best-in-class ESG and carbon
footprint characteristics.
In September 2024, ACG successfully
completed the acquisition of the Gediktepe Mine, an operating open
pit mine in Türkiye currently producing 34 koz of gold and 361 koz
of silver. Gediktepe is expected to transition to primary copper
and zinc production from 2026 and will target annual steady-state
copper equivalent production of 20-25 kt.
ACG's team has extensive M&A
experience built through decades spent at blue-chip multinationals
in the sector. The team brings a significant network as well as a
commitment to ESG principles and strong corporate
governance.
For more information about ACG,
please visit: www.acgcorp.co