Wanguo International Mining Group Ltd. said Sept. 5 that it signed a US$276 million construction and mining contract with China Railway International Group Co. and China Railway No. 10 Engineering Group Co. for the Gold Ridge project in the Solomon Islands.
Wanguo is acquiring 77.78% of AXF Gold Ridge Pty Ltd., which owns a 90% stake in mining license holder Gold Ridge Mining Ltd, for A$53.5 million, including A$11.1 million in reconstruction work at the project.
China-based Wanguo will act as a guarantor of Gold Ridge Mining for the contract, which will take effect once Wanguo completes its takeover of AXF Gold Ridge.
The contract, valid until March 2034, covers the project's first phase, including the open-pit stripping and mining operation.
The contract price for the second phase, which includes deep underground development and mining, as well as the construction of a road, bridge and new tailings, is estimated at more than US$500 million.
