Graña y Montero, through its subsidiary STRACON GyM, which specializes in comprehensive services for the mining sector, will be in charge of construction and operation of the San Ramón mine, located in Medellín, Colombia; which, upon completion, will be one of the top gold mines in such country.
The mine, which belongs to the Canadian firm Red Eagle Mining Corporation, has already started development of the gold field and production is expected to start in 2016.
“We have closed a contract with Red Eagle Mining Corporation under which we have been awarded the services contract in the amount of US$ 155MM to develop, start up and operate the San Ramón mine for eight years. Certainly, this contract will enhance the presence of Graña y Montero in Colombia and strengthen our participation in the mining sector regionwide”, said Steve Dixon, General Manager of STRACON GyM.
It should be noted that, as part of this contract, STRACON GyM purchased shares in Red Eagle Mining Corporation for US$ 3.5MM. Furthermore, after executing the contract, STRACON GyM will make a new share purchase for the same amount, which would give it a minority interest of 19.94% in Red Eagle Mining Corporation.