Issues Notice of Award to DRA/Group Five Joint Venture as Construction Contractor on Fixed Price Basis
TORONTO, March 4, 2015 /CNW/ - Roxgold Inc. ("Roxgold" or "the Company") (TSX.V: ROG) is pleased to announce that it has selected the DRA / Group Five Joint Venture ("JV") as its preferred Engineering, Procurement and Construction (EPC) contractor for the Yaramoko Gold Project.
The fixed price, lump sum contract totals US$34.9 million. The JV is responsible for the full delivery of Engineering, Procurement, Project Management Services, Construction and Commissioning of the proposed 270,000 tonnes per year gold ore processing plant including performance tests and warranties, as well as the associated plant site infrastructure. The contract terms are subject to Roxgold's lenders' approval and collation of final schedules.
To date, US$10 million has been spent or committed on long lead project items such as the SAG Mill, detailed design and Armtec tunnel for underground mine access as well as tower steel and a transformer for the 90 KV power line. The award of the fixed price EPC contract to the DRA / Group Five JV results in over 50% of the estimated total capital cost of the Yaramoko Gold Project as either being now spent or fixed in nature. This important contract is further confirmation of the ongoing validity of the capital cost assumptions made in the Feasibility Study completed last year.
"We are delighted to have the DRA / Group Five JV partner with us on this project," said Paul Criddle, Roxgold's Chief Operating Officer. "This key contract being Lump Sum provides us with greater confidence in our ability to execute the project. Over half of the total project scope is now either fixed in price or spent, further de-risking the delivery of the Yaramoko Gold Project."
In parallel with establishing the EPC agreement, Roxgold is in the final stages of executing several other important project contracts. The accommodation camp contract has been signed as a fixed priced lump sum agreement. In addition, the earthworks agreement is due to be executed in March. "Roxgold is very pleased with the engagement of the DRA / Group Five JV as we progress in advancing the Yaramoko Gold Project. Our project execution planning is well advanced and we are in a strong position to shortly commence project works in Burkina Faso," commented John Dorward, President and CEO.
DRA and Group Five's recent successes include the Kibali Gold Project in the DRC, one of the largest gold plants in the world, the Edikan (Central Ashanti) Gold Project in Ghana as well as the Perkoa Zinc Project in Burkina Faso. Their experience in the region uniquely qualifies the DRA/ Group Five JV to support and successfully implement the Yaramoko Project in Burkina Faso.
Roxgold is a gold exploration and development company with its key asset, the high grade Yaramoko Gold Project, located in the Houndé greenstone region of Burkina Faso, West Africa. The Company is currently advancing Yaramoko's 55 Zone and subject to making a positive construction decision expects to commence development in Q1 2015. Roxgold trades on the TSX Venture Exchange under the symbol ROG.
"Neither TSX Venture Exchange nor its Regulation Services Provider nor BNP Paribas nor Societe Generale (as that term is defined in policies of the TSX Venture Exchange) accepts any responsibility or liability of any nature whatsoever for the adequacy, completeness or accuracy of this release which is made solely and entirely by, and under the responsibility and with the liability of, the Company."
This news release contains forward-looking information. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. In certain cases, forward-looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Forward-looking information contained in this news release is based on certain factors and assumptions regarding, among other things, the estimation of mineral resources and mineral reserves, the realization of resource estimates and reserve estimates, gold metal prices, the timing and amount of future exploration and development expenditures, the estimation of initial and sustaining capital requirements, the estimation of labour and operating costs, the availability of necessary financing and materials to continue to explore and develop the Yaramoko project in the short and long-term, the progress of exploration and development activities, the receipt of necessary regulatory approvals, the completion of the environmental assessment process, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including, but not limited to, variations in market conditions, the nature, quality and quantity of any mineral deposits that may be located, the Company's ability to obtain any necessary permits, consents or authorizations required for its activities, the Company's ability to be fully able to implement its business strategies and other risk factors described in the Company's annual information form and other filings with the Canadian securities regulators which may be viewed at www.sedar.com.
SOURCE Roxgold Inc.
For further information: Annelise Burke, Manager, Investor Relations and Corporate Communications, 416-203-6401, [email protected]