REG - ACG Metals Ltd. - EPC Contract Secured for Gediktepe Mine

ACG MetalsAnnouncement

04/11/2024 07:00

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RNS Number : 7166K  ACG Metals Limited  04 November 2024

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 (mailto: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
(http://www.acgcorp.co/)

 

 

 

 

 

 

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