HANKING GOLD (03788.HK): EPC and EPCM contracts for 5.5 Mtpa processing plant of Mt Bundy gold project awarded to two contractors, with aggregate contract value of approximately AUD 120.98 million

NewTimeSpace News: On 10 August 2026, Hanking Gold International Limited (stock code: 03788) published a discloseable transaction announcement, announcing that, following a competitive tendering process and full plant evaluation, Primary Gold Pty Ltd, a wholly-owned subsidiary of the Company (as project owner and operating entity), awarded the two contracts for the construction of the 5.5 million tonnes per annum (Mtpa) processing plant of the Mt Bundy gold project to two key delivery contractors after trading hours on that day: Delonix Solutions Projects Pty Ltd was awarded the CO02 contract (the "EPC Contract") for engineering, procurement and construction of the Mt Bundy dry processing plant (SP1 package); and CPC Engineering Pty Ltd was awarded the CO01 contract (the "EPCM Contract") for engineering, procurement and construction management of the Mt Bundy wet processing plant (SP2 package). The aggregate contract value under the EPC Contract and the EPCM Contract is approximately AUD 120.98 million.

The EPC Contract (dry plant SP1), undertaken by Delonix Solutions, covers the complete design, engineering, procurement, construction, installation and commissioning of the dry plant, including the ROM bin and primary crushing circuit, secondary crushing, closed-circuit HPGR tertiary crushing circuit, covered fine ore stockpile and reclaim, civil, structural, mechanical, piping, electrical, process control and fire protection works, with a contract value of AUD 92.48 million on a fixed price basis; the dry plant has a maximum design processing capacity of 7.0 Mtpa, higher than the nameplate capacity of 5.5 Mtpa, with built-in capacity reserved for future expansion, targeting completion and commissioning of the dry plant by December 2027. The EPCM Contract (wet plant SP2), undertaken by CPC Engineering, covers the engineering from fine ore stockpile reclaim to the wet plant and from Tom's Gully fine ore bin reclaim feeding to the wet plant, with CPC Engineering managing all procurement for SP2 on behalf of Primary Gold and responsible for interface management with the dry plant EPC Contract; the EPCM budget is AUD 28.5 million (including a 15% contingency), targeting completion of the works by April 2027 and commissioning of the wet plant in early 2028 to support first gold production in Q1 2028.

The delivery model intentionally separates the dry plant, suited to fixed-price modular EPC, from the wet plant, which adopts an EPCM model with fixed-price engineering and procurement, enabling the Company to directly and clearly control major equipment procurement while retaining scheduling flexibility. The announcement disclosed that, notwithstanding the significantly optimised process flows and the newly added future expansion option, the awarded contract values and the remaining plant capital estimates remain consistent with the final feasibility study, with plant capital expenditure of approximately AUD 393.97 million; the plant construction and subsequent mining operations will create up to 400 jobs. Delonix Solutions is a Perth-based mineral processing engineering company (established in 2011), and CPC Engineering is an engineering group in Western Australia with over 50 years of operating history; both companies and their ultimate beneficial owners are third parties independent of the Company and its connected persons. Dr. Qiu Yumin, executive director, chief executive officer and president of the Company, commented that awarding the EPC and EPCM contracts for the plant construction is an important step in developing the Mt Bundy gold project into a producing gold mine, and that with the ball mill already ordered, the construction site cleared and earthworks progressing, the project remains on track to commence gold production in Q1 2028.

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