ASX ANNOUNCEMENT 23 October 2014
ASX Code: BDR
MINING PARTNERSHIP AGREEMENT WITH MACA LIMITED
Beadell Resources Limited ("Beadell" or "Company") is pleased to announce that it has entered into a Letter of Intent for a Mining Partnership Agreement ("Agreement") with MACA Limited ("MACA", MLD.ASX) for the management of all drill & blast, load & haul, crusher feed and auxiliary services at the Company's 100% owned Tucano Gold Mine in Brazil for a term of five years. Beadell's existing mobile mining fleet and equipment (including related spare parts and consumables) will progressively be transferred to MACA under a two-year staged acquisition process totalling approximately A$40 million, half of which will occur on 1 November, 2014.
Key MACA personnel have been on site as technical advisers since early September. Immediate and significant productivity improvements across all areas are evident.
MACA is a publicly listed Western Australian based Mining & Civil Engineering company with extensive experience in large scale open pit gold mining.
Peter Bowler, Beadell's Managing Director commented: "This strategic partnership will have many benefits for Beadell including:
• Strengthening the Company's cash position and balance sheet. Additionally, no more mobile equipment will be required to be purchased by Beadell;
• Providing surety of meeting Beadell's strong production forecasts now and in future years; and
• Returning Beadell's All in Sustaining Costs to the lowest quartile by sharing in the benefits of the expected ~30-40% productivity improvements at Tucano by leveraging off MACA's expertise and experience.
The benefits of this partnership should not be underestimated and will ensure that Beadell remains a low cost gold producer for many years to come."
For further information please contact:
Peter Bowler | Managing Director Greg Barrett | Company Secretary / CFO T: +61 8 9429 0801 T: +61 8 9429 0803 [email protected]mailto:[email protected]mailto:[email protected][email protected]
Beadell Resources Limited
Second Floor, 16 Ord Street, West Perth 6005, Western Australia ABN 50 125 222 291 PO Box 542, West Perth 6872, Western Australia www.beadellresources.com.au Telephone: +61 8 9429 0800 | Facsimile: +61 8 9481 3176