Capital signs largest contract with Sukari in Egypt
Capital Limited, a mining services company focused on Africa, has entered into a conditional open pit waste mining services contract with Sukari Gold Mines, and expanded its existing drilling contract with Sukari.
Sukari is the operating company for the Sukari Gold Mine in Egypt, one of the largest gold mines in Africa and the principal asset of Cetamin.
In a statement, Capital Limited says that collectively the Sukari contract and amended agreement are anticipated to deliver incremental revenues of £175.8 million to £194.5 million over a four-year period commencing January 1 – representing the largest award of new business in the company’s history.
“The winning of the tender for the Sukari open pit waste mining contract is a significant milestone for Capital – it is the largest contract win for the Group since inception, adds substantial scale to our mining services division, as well as providing revenue diversification from our drilling services business,” says Jamie Boyton, executive chairman of Capital Limited.
“We are also pleased to have increased the scope and scale of our existing drilling contract. Having operated at the Sukari mine since 2005, which started commercial gold production over a decade ago, Capital is pleased to be deepening further its strong client relationship with Centamin in assisting with the generation of significant value to Centamin over the medium and longer term as the Sukari mine enters its next phase of gold production,” he adds.
The statement also announces a proposed placing to raise gross proceeds of approximately £22 million before expenses, via the issue of an aggregate of approximately 38.5 million new common shares in the company at a price of 58 pence per share. The placing is to be conducted by way of an accelerated bookbuild process, launched with immediate effect.
“The proposed fund raise provides Capital with the opportunity to broaden and deepen its shareholder register. Both the equity raise, and the mining services contract will further consolidate Capital’s position as one of the leading mining and drilling services operators on the African continent. The Capital team is looking forward to mobilising the required equipment and operational staff to start the work required at Sukari,” says Boyton.
Joh. Berenberg, Gossler & Co. KG, London Branch and Tamesis Partners LLP are acting as Joint Bookrunners in relation to the placing, the statement says.
The Sukari Contract and the issue of the Placing Shares are subject, inter alia, to shareholder approval.
A circular containing a notice of General Meeting will shortly be posted to shareholders and placed on the company's website.
The Amended Sukari Drilling Contract, effective January 1, is not subject to shareholder approval or any other conditions precedent, the statement concludes.
Vale invests $150mn to extend life of Manitoba operations
Vale has announced a $150mn CAD investment to extend current mining activities in Thompson, Manitoba by 10 years while aggressive exploration drilling of known orebodies holds the promise of mining well past 2040.
Global energy transition is boosting the market for nickel
The Thompson Mine Expansion is a two-phase project. The announcement represents Phase 1 and includes critical infrastructure such as new ventilation raises and fans, increased backfill capacity and additional power distribution. The changes are forecast to improve current production by 30%.
“This is the largest single investment we have made in our Thompson operations in the past two decades,” said Mark Travers, Executive Vice-President for Base Metals with Vale. “It is significant news for our employees, for the Thompson community and for the Province of Manitoba.
“The global movement to electric vehicles, renewable energies and carbon reduction has shone a welcome spotlight on nickel – positioning the metal we mine as a key contributor to a greener future and boosting world demand. We are proud that Thompson can be part of that future and part of the low carbon solution.”
Vale continues drilling program at Manitoba
Coupled with today’s announcement, Vale is continuing an extensive drilling program to further define known orebodies and search for new mineralization.
“This $150mn investment is just one part of our ambitious Thompson turnaround story. It is an indicator of our confidence in a long future for the Thompson operations,” added Dino Otranto, Chief Operating Officer for Vale’s North Atlantic Base Metals operations.
“Active collaboration between our design team, technical services, USW Local 6166, and our entire Thompson workforce has delivered a safe, efficient and fit-for-purpose plan that will enable us to extract the Thompson nickel resources for many years to come.”
The Thompson orebody was first discovered in 1956 by Vale (then known as Inco) following the adoption of new exploration technology and the largest exploration program to-date in the company’s history. Mining of the Thompson orebody began in 1961.
“We see the lighting of a path forward to a sustainable and prosperous future for Vale Base Metals in Manitoba,” said Gary Annett, General Manager of Vale’s Manitoba Operations.