Rex Minerals has signed a non-binding EPC and financing MoU with China Nonferrous Metals Industry’s Foreign Engineering and Construction Co (NFC) and its Australian-based subcontractor Arccon as part of the engineering, procurement and construction (EPC) and overall financing plan for the development of the Hillside Copper Project on Yorke Peninsula, South Australia.
The purpose of the MOU is to provide a framework for co-operation for establishing the cost and program for delivery of the Hillside project. In addition the MOU establishes the procedure to develop and submit a binding quote to Rex for the finalization and execution of EPC and Financing Terms Sheets.
Rex’s managing director Mark Parry says, “We are extremely pleased to start what we consider to be a long term relationship with NFC from China. NFC is a major highly experienced construction company with a history of successfully building processing plants around the globe. We believe NFC’s experience and the link with an Australian construction company in Arccon will be an important formula for success as we advance the Hillside Project towards production.
“With greater certainty about the timing and quantum of debt funding, Rex is now well positioned to continue commercial negotiations with a range of parties to secure the balance of the funding. To date these include potential iron ore offtake partners, parties seeking to provide funding to get long term access to copper supply, and other investors actively seeking involvement in Hillside including potential JV partners at project level,” he says.
The indicative timetable contemplates commencement of construction at Hillside in the first half of 2014 following signing of the EPC Contract and finalizing financing which are anticipated to be in place by September/October 2013.