Contractor Morrison Knudsen (NYSE) has been selected to construct facilities for the Fort Knox gold mine, north of Fairbanks, Alaska.
Fairbanks Gold Mining, a wholly-owned subsidiary of Amax Gold (NYSE), hired the firm to build the primary crusher conveyor system, the mill and other structures, as well as begin development of the pit. A freshwater reservoir and tailings dam will also be established.
The entire job is estimated to cost US$256-million.
In other news, Morrison Knudsen plans to sell its gold division, MK Gold (NASDAQ), to Leucadia National, an insurance-holding company.
All 9 million shares of MK Gold, valued at US$22.5 million cash, will be sold, contingent upon Leucadia releasing Morrison Knudsen from its guarantee obligations under a US$20-million credit facility with the Canadian Imperial Bank of Commerce, of which US$15 million is outstanding.
The 9 million shares represent almost half of the 19.4 million outstanding shares of MK Gold.
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