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Highlights
- Western Gold Resources has selected SSH Group Limited as the preferred mining contractor for the Gold Duke Project.
- The appointment is non-binding, pending a Master Services Agreement and fulfillment of internal milestones.
- SSH Group has proposed a non-dilutionary capital facility to support early-stage cash flow, reducing funding needs.
Western Gold Resources (ASX:WGR) has announced SSH Group Limited (ASX:SSH) as its preferred mining contractor for the Gold Duke Project in Western Australia. This selection follows a comprehensive competitive pricing review and marks a critical step toward advancing the project’s development.
Agreement Details and Progress
The appointment remains non-binding and is contingent on the execution of a Master Services Agreement (MSA) between the two parties. Western Gold Resources plans to finalize all outstanding commercial terms and conditions in due course.
Key internal milestones, including the approval of a toll treatment or ore purchase agreement and a Final Investment Decision by the WGR Board, will be required before the MSA becomes binding.
Capital Facility to Support Cash Flow
SSH Group has proposed a capital facility under a deferred payment arrangement designed to bolster WGR’s cash flow during the initial stages of the Gold Duke Project. The facility is non-dilutionary, potentially reducing the need for additional funding as the project ramps up.
Role of SSH Group and Strategic Alliances
SSH Group, an ASX-listed Perth-based service provider, will leverage its extensive experience in the mining, civil, and construction industries to support the development of the Gold Duke Project. The company will oversee all mining services, haulage, and technical aspects of the project while ensuring compliance with regulatory and safety standards.
The collaboration also benefits from SSH Group’s alliances with proven contractors, enhancing the efficiency and operational readiness of the Gold Duke Project, particularly in the Western Australian Goldfields.
Ongoing Discussions and Market Response
WGR is in active negotiations with multiple nearby processing plants within an economically viable distance to secure toll treatment agreements. These discussions are expected to pave the way for the project’s near-term development.
Following the announcement, Western Gold Resources’ share price surged over 30%, reaching 6 cents per share during early morning trading on January 15, 2025.
