African Underground Mining Services (AUMS) has signed a four-year deal to provide a mining fleet and skilled labour for Roxgold’s (TSXV: ROG; US-OTC: ROGFF) Yaramoko gold project in Burkina Faso.
Under the deal AUMS has agreed to subscribe for US$5 million in Roxgold shares under the contract, and Roxgold could pay the contractor up to US$10 million in the form of Roxgold shares.
“We are delighted by the confidence shown in the Yaramoko gold project by one of the most experienced underground mining contractors in the West African region,” Roxgold president and CEO John Dorward said.
AUMS is a joint venture between two Australia-based companies: Ausdrill (ASX: ASL; US-OTC: AUSDF), an international mining services firm, and Barminco, a specialist underground mining contractor.
“Partnering with an experienced team which has a demonstrated presence in West Africa furthers our objective to deliver our first full year of production at Yaramoko in 2016,” said Roxgold chief operating officer Paul Criddle.
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