Champion signs agreement with Bateman
Champion Resources Inc CHL
Shares issued 24,184,440 Sep 28 close $0.90
Wed 29 Sept 99 News Release
Mr. Michael McInnis reports
A framework agreement has been signed with Bateman Projects Ltd. for the
supply of project services for the Farim phosphate project in Guinea
Bissau, West Africa. This represents an important milestone for the Farim
project, engaging an internationally recognized South African engineering
firm to act as the primary contractor with responsibilities that will
satisfy certain prerequisites required under the terms of the South African
sourced project financing. The financing package is currently in the final
approval process and a financing commitment is anticipated prior to
year-end.
The framework agreement will form the basis of a EPCM contract under which
Bateman will execute, at a minimum, the complete engineering, procurement
and construction management services for the processing plant, which will
be designed to produce phosphate rock concentrate at a minimum grade of 32
per cent P(2)O(5). The contract will include operator training,
commissioning, startup, performance testing and handover of the plant.
Bateman will provide guarantees as outlined in the framework agreement
including quality control and assurance, process and capacity guarantees,
performance guarantees, equipment guarantees and completion guarantees.
Bateman brings extensive African and phosphate experience to the Farim
project through its phosphate and derivatives technology division.
Champion Resources has a 100-per-cent interest in the Farim phosphate
project, which has phosphate reserves in excess of 105 million tonnes
grading 29.8 per cent P(2)O(5) with a mine life of over 25 years. Annual
production from Farim is expected to reach 1.5 million dry tonnes of
phosphate rock concentrate grading 32 per cent to 34 per cent P(2)O(5).
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