Chinoy Engineering & Construction (Pvt) Limited (CECL), an associated company of International Industries Limited (INIL), has secured a contract to construct a Permanent Accommodation Camp at Reko Diq Copper Gold Mines, Balochistan.
The development was shared by INIL in its notice to the Pakistan Stock Exchange (PSX) on Friday.
“We would like to inform you that CECL, an associated company has invited equity investment by International Industries Limited (IIL) of 4,845,000 ordinary shares of Rs10 each making a total of Rs48,450,000/- which is 17% of its post-issuance paid up capital,” read the statement.
“In addition, CECL has also invited a short-term loan of up to Rs300 million, if needed, at a markup of KIBOR + 3% and/or a corporate guarantee in favor of Habib Bank Limited (HBL) for CECL to secure financing of up to Rs1.5 billion, and/or issue a guarantee to ensure that CECL performs its contractual obligations with Reko Diq Mining Company Ltd (RDMC), with joint and several liability with associated companies International Steels Limited and Pakistan Cables Limited.”
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INIL informed that CECL, which was established to explore business opportunities in construction projects, has “successfully entered into a contract with the RDMC to design and construct a Permanent Accommodation Camp at Reko Diq Copper Gold Mines, Baluchistan”.
The Reko Diq project is a significant mining and development initiative located in the Chagai District of Balochistan.
The project is strategic part of Canadian mining company Barrick Gold’s copper portfolio and represents one of the largest undeveloped copper-gold projects in the world.
Reko Diq is owned 50% by Barrick, 25% by three federal state-owned enterprises, 15% by the Province of Balochistan on a fully funded basis and 10% by the Province of Balochistan on a free carried basis.
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Meanwhile, in its statement, INIL shared that the company’s Board of Directors understands that this investment will maximise shareholders’ value of the company.
“They recommended accepting the invitation to invest in CECL and have called an Extraordinary General Meeting (EOGM) of the shareholders of the Company for the approval of the investment by way of special resolutions,” it said.
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