Nagambie Resources Limited (ASX: NAG) is entering into a trial arrangement to store Potential Acid Sulfate Soil (PASS) material from the North East Link Project. This material will be stored under water in the West Pit at the Nagambie Mine.
The PASS trial delivery arrangement is with EPH Environmental Pty Ltd (EPH). Nagambie is permitted to store PASS material in the West Pit at the Nagambie Mine as part of its rehabilitation efforts. To manage the PASS delivered by EPH trucks during the trial period, Nagambie is contracting VicCivil, an experienced Victorian earthmoving contractor. VicCivil will be responsible for conveying the PASS below water in the West Pit.
The trial arrangement is expected to last for two months. The tonnage to be delivered during the trial period is at EPH’s discretion, with all EPH trucks being weighed on Nagambie’s weighbridge at the Nagambie Mine. Nagambie will invoice EPH weekly for truck deliveries over the weighbridge, and Nagambie will pay VicCivil’s weekly invoices after receiving payment from EPH. This arrangement ensures that Nagambie will remain cash flow positive throughout the trial.
The company is hopeful that the trial arrangement with EPH could lead to a longer-term contract and the generation of significant cash flow for Nagambie.
To read more about this, please visit www.nagambieresources.com.au
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