A future Timmins gold miner has signed a letter of intent (LOI) with a utility contractor to build the transmission infrastructure for its gold property.
Gowest Gold said it’s working toward formalizing an agreement with Valard Construction LP for the financing, design, procurement and construction of a high-voltage electrical infrastructure to connect its Bradshaw gold deposit to the provincial power grid.
A formal construction contract is expected to be signed shortly.
Before Christmas, Gowest announced it had cashed up through an arrangement with PGB Timmins Holdings to start development of its Bradshaw gold deposit, located 42 kilometres north of Timmins.
PGB is advancing Gowest US $17.6 million to flow in four tranches over 12 months as partial consideration for the purchase of up to 65,805 ounces of gold to be produced at the Bradshaw mine.
Valard, an international engineering and construction contractor specializing in high voltage electrical infrastructure, will lead the application process to solicit required regulatory approvals; provide up-front funding for the project; and, design and construct the transmission facilities.
In turn, Gowest plans to compensate Valard for the cost of the project during the term of the Bradshaw mine.
Until the power lines are strung, Gowest is using portable diesel generators at the site.
"This evolving partnership with Valard represents another step towards the development of Bradshaw into the next new gold mine in Timmins,” said Gowest president-CEO Greg Romain in a statement.
"We are very pleased to be partnering in the development of Gowest's project,” said Valard president Adam Budzinski, “which is significant not only for both of our companies but also for the community of Timmins, which has benefited from and supported mining in the region for more than a century."
