Hanking Gold awards AUD120.98 million EPC/EPCM contracts to build 5.5 Mtpa Mt Bundy processing plant

Hanking Gold International Limited, through wholly owned subsidiary Primary Gold Pty Ltd, has signed two key contracts worth a combined AUD120.98 million for the construction of the 5.5 Mtpa processing plant at the Mt Bundy Gold Project in Australia.

The Dry Plant package (SP1) has been let to Delonix Solutions Projects Pty Ltd under a fixed-price EPC agreement valued at AUD92.48 million. Scope covers full design, procurement, construction, installation and commissioning of run-of-mine, crushing and HPGR circuits, with guaranteed product sizing (P80 4.7 mm) and plant availability. The facility is engineered for 7.0 Mtpa throughput, providing expansion headroom beyond the 5.5 Mtpa nameplate. Completion and commissioning are targeted for December 2027.

The Wet Plant package (SP2) is contracted to CPC Engineering Pty Ltd under an EPCM structure. The AUD28.50 million budget includes a fixed lump-sum of AUD9.46 million for engineering and procurement and a 15 % contingency. Engineering completion is scheduled before April 2027, with wet commissioning and first gold pour expected in the first quarter of 2028.

Total process-plant capital is estimated at AUD393.97 million, comprising the SP1 EPC (AUD92.48 million), SP2 EPCM plus capital items (AUD257.99 million) and a contingency of AUD43.50 million. The figure remains broadly in line with the AUD360.40 million definitive feasibility study estimate published in 2025, despite flowsheet enhancements that include a larger 18 MW ball mill and upgraded HPGR configuration.

Funding will draw on approximately AUD220 million of existing cash reserves dedicated to gold development, with the balance expected from debt financing. A competitive debt tender involving 14 Australian and international banks is at an advanced stage.

All construction permits are in place, site clearing and initial earthworks have commenced, and key long-lead equipment—such as the ball mill from CITIC Heavy Industries—has been ordered. The project is expected to generate up to 400 jobs during construction.

Under Hong Kong Listing Rule 14.22, the EPC and EPCM contracts are aggregated and classified as a discloseable transaction, as the highest applicable percentage ratio exceeds 5 % but is below 25 %.