Ora Banda Mining Ltd (ASX:OBM) has granted MLG Oz Ltd a two-year extension with an additional one-year option for renewal for the provision of haulage and site services at its Davyhurst Gold Project in the Eastern Goldfields region of Western Australia.
The extension of the existing services is accompanied by new commercial terms negotiated in line with current cost drivers and production expectations.
Annual revenue from this contract to MLG, subject to production and performance, is about A$15 million per annum.
Building sustainable relationships
“We are very pleased to be able to extend our relationship with Ora Banda Mining and to be able to continue to support their Davyhurst operation under mutually agreed terms,” MLG founder, managing director and majority shareholder Murray Leahy said.
Kalgoorlie-based MLG provides integrated services across gold, iron ore and other base metal clients throughout Western Australia and in the Northern Territory.
Its services encompass crushing and screening capabilities, including build, own and operate models, contract crushing and screening services, crusher feed and material management.
About the company
Ora Banda Mining is a uniquely positioned gold exploration and development company having 100% ownership of the Davyhurst Gold Project in the highly productive Eastern Goldfields region of Western Australia.
The company also owns an existing centralised 1.2 million tonnes per annum processing hub, as well as an additional established infrastructure at Davyhurst.
The Davyhurst Project is around 120 kilometres northwest of Kalgoorlie, and the region is host to multiple gold deposits currently carrying a total resource inventory of 2.17 million ounces at an average grade of 2.8 g/t gold.