Graña y Montero Announces Awarding of New Contract in Colombia
By Business Wire News
By Business Wire News
Graña y Montero S.A.A. (NYSE: GRAM) (BVL: GRAMONC1) (“the Company” or “Graña y Montero”) a leading Engineering and Construction company, announced today that through its subsidiary, STRACON GyM, specialized in services for the mining sector, will be in charge of the construction and operation of the San Ramon Gold Mine, located in Medellin, Colombia. Once this mine is built, it will be one of the major mines in that country.
The mine, owned by the Canadian company Red Eagle Mining Corporation, has initiated the development of the gold deposit and plans to start production in 2016.
“We have reached an agreement with Red Eagle Mining Corporation, for which we have been awarded the service contract for an amount of US$ 155 million to develop and operate for a period of eight years the San Ramon mine. This will undoubtedly enhance the presence of Graña y Montero in Colombia and will strengthen our participation in the mining sector at a regional level,” said Steve Dixon, Chief Executive Officer of STRACON GyM.
It is worth mentioning that as part of this agreement, STRACON GyM has acquired shares from Red Eagle Mining Corporation for an amount of US$ 3.5 million. In addition, after signing the contract, a new purchase of shares for the same amount will be executed, with which a minority stake of 19.94% will be obtained.
About Stracon GyM S.A.
STRACON GyM is Graña y Montero’s company with regional experience in integral mining services, which currently operates in Peru and Panamá. The most important projects that the subsidiary currently is in charge of include La Arena mine (La Libertad) and Shahuindo project (Cajamarca) from Rio Alto Mining; as well as Constancia mine (Cusco) from HudBay Minerals, which was recently built. In the latter case, STRACON GyM participated in the initial construction and the company continues working on the operation and construction of the ongoing services. STRACON GyM, participates in the project Mina de Cobre Panama from First Quantum as well as in several other projects for Buenaventura which include Orcopampa and Poracota gold mines (Arequipa).
About Graña y Montero S.A.A.
Graña y Montero is the only Peruvian engineering and construction company listed on the Lima Stock Exchange since 1997 and in the NYSE since 2013. The Company has participated in the development of major engineering and construction projects in Peru, including large-scale, complex projects in the energy, mining, construction and real estate sectors.
With 82 years of operations, the Company has leveraged its engineering and construction expertise into complementary lines of business, such as the development, ownership, operation and maintenance of infrastructure assets, real estate developments, and the provision of technical services. The Company has significant investments in infrastructure concessions, such as three toll roads and Line 1 of the Lima Metro.
The Company has also executed several projects outside Perú, and has acquired three companies in Chile: DSD Construcciones y Montajes, an engineering and construction company specialized in providing services to the energy, oil and gas, cellulose and mining sector in Chile and Latin America; Vial y Vives, a construction company specialized in the mining sector, and CAM, specializing in electric services, with operations in Chile, Peru and Colombia. It recently acquired Morelco, a Colombian company specialized in electromechanical assemblies, civil works, and services for the oil and gas industry as well as energy industry.