Barminco expected to receive $A38m contract for mining services

Company News

by Adrian Tan

Hard-rock miner Barminco, a subsidiary of Perenti Global (ASX:PRN), has received a letter of intent from Newcrest Mining (ASX:NCM) for work at the Red Chris Project in British Columbia, Canada. The contract will involve mobilisation and site establishment activities, and development of a 3.5km underground exploration decline.

The Red Chris Project is a 70:30 joint venture partnership between Newcrest and Imperial Metals Corporation. Ground activities are expected to start mid-2021, and the contract is expected to generate around A$38 million over 16 months.

Perenti Managing Director and CEO Mark Norwell comments, "Geographic expansion has been a key focus of our 2025 strategy and this early-stage work at Red Chris builds on our regional growth capabilities after commencing in North America just over a year ago... Our focus at Red Chris will be on delivering safe, reliable and efficient development services and we look forward to building a long and productive relationship with Newcrest, the members of the Tahltan Nation and all of our stakeholders in British Columbia."

Shares in Perenti Global (ASX:PRN) are trading 0.92 per cent lower at $1.075.

Image from: https://www.newcrest.com/our-assets/red-chris