Yellow River to build Theta’s TGME Gold Plant in South Africa

Theta Gold Mines has signed a memorandum of understanding (MOU) with Yellow River (YRC), a Power Construction Corporation of China (PowerChina) unit, for the construction of the first phase of its TGME project in Mpumalanga Province, South Africa.

The agreement includes the development of a tailings storage facility and wastewater dams.

It outlines the construction of Theta’s stage-one TGME Gold Plant, which is estimated to have a 45 kilotonnes-per-month capacity for run-of-mine processing.

The parties plan to sign a formal engineering, procurement and construction (EPC) contract by the second quarter of 2024. This contract is expected to be valued at $30m.

Yellow River will receive a fixed margin on the EPC contract, in addition to a completion incentive.

The progression of the EPC contract is contingent upon Theta Gold securing the necessary funding for the upfront payments agreed upon between the parties.