MACA is in the box seat for circa $172 million in mining contracts at Echo Resources’ Yandal gold project in the Goldfields.
The contractor said Echo had signed a letter of intent for MACA to perform open pit mining services and mill refurbishment and commissioning at the project north east of Leinster.
The work is subject to Echo’s board making a decision to proceed with the project.
MACA’s estimate of the two contracts’ value is based on a bankable feasibility study for the first stage of the project.
Echo chief executive Victor Rajasooriar said: “By involving MACA at this early stage and engaging with them constructively, we are confident of achieving efficiencies and synergies which will enhance the economics of the optimised BFS.”
MACA has agreed to subscribe for $1.5 million Echo shares at 11¢ each as part of a capital raising of up to $6.5 million.
Echo’s biggest shareholder Northern Star Resources is contributing $2.5 million. The rest will come from an entitlement issue at 10.5¢ each.
The miner said the funds would be used for pre-development expenses at Yandal and other work.
MACA is also set to begin next Monday overburden mining at Carabella Resources’ Bluff Coal project in Queensland under a $700 million life-of-mine contract.
The contract was announced in August.
MACA shares were down 0.5¢, or 0.6 per cent, to 90¢ at 12.37pm. Echo stock was up 0.3¢, or 2.6 per cent, to 12¢.