The Alien Metals Ltd (LON: UFO) share price remained muted despite announcing that its Australian subsidiary Iron Ore Company of Australia Pty Ltd (IOCA) awarded REGROUP Australia as its preferred primary contractor.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
REGROUP will undertake the construction works, mining operations and haulage services for IOCA’s flagship Hancock Iron Ore Project in the Pilbara region of Western Australia. IOCA conducted a competitive market engagement to find the right contractor over the past six months.
Top Broker Recommendation
- eToro Top stock trading platform with 0% commission – Read our Review
- Admiral Markets More than 4500 stocks & ETFs available – Read our Review
- BlackBull 26,000+ Shares, Options, ETFs, Bonds, and other underlying assets – Read our Review
- IG Top-tier regulation – Read our Review
- XTB UK regulated by the FCA – Read our Review
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
IOCA wanted to find a commercially and technically adept contractor to undertake works as part of the Hancock development and operations. REGROUP was appointed as the preferred construction contractor for constructing an intersection of the Project area at the Great Northern Highway.
REGROUP is the preferred contractor for constructing an access track from the Great Northern Highway to the Mine Site. The company has also been selected as the preferred operations contractor for mining services, including drilling and blasting activities and haulage services for transporting the ore mined at the site to Port Hedland.
The selection of REGROUP as the primary contractor for construction and operations for the Hancock Project significantly de-risks the Project. It also removes the inherent interface and delay risk across the mine construction and operational activities.
REGROUP are a highly experienced civil construction, mining and haulier group known for prioritising environmental consciousness and partnerships with traditional owners and communities.
The pricing submitted by REGROUP's bid supports the potential for capital savings compared to those forecasted in the scoping study.
The Alien Metals CEO Troy Whittaker commented: “Securing REGROUP as a key contractor for the Hancock Project is a significant milestone for the company as it further de-risks the Hancock Project. This is the first step in locking in relationships with contractors on the back of the IOCA sourcing process, securing competitive pricing from contractors, which moves planning for the project forward. We are excited to partner with REGROUP, a company that shares our values. REGROUP has set the goal of becoming carbon neutral via the use of a fully battery-powered fleet and the utilisation of solar and wind to help power their sites.”
Alien Metals share price.
The Alien Metals share price traded sideways despite announcing it had secured a contractor.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.