North American Construction Group Ltd. Announces Award of Gold Mine Construction Contract
October 22 2020 - 7:55AM
North American Construction Group Ltd. (“NACG” or “the Company”)
(TSX:NOA.TO/NYSE:NOA) today announced the award of a major
earthworks construction contract at a gold mining project in
Northern Ontario.
The contract was awarded to a newly formed joint
venture owned and operated equally by NACG and Nuna Group of
Companies (“Nuna”). The award of this two-year project, valued at
over $250 million, reflects the expertise and client trust Nuna has
gained over its 27-year history. The scope will occur during the
construction phase of the gold mine project and is expected to
commence this quarter, ramp up through Q1 2021, achieve peak
volumes in Q3 2021 and be completed in the fall of 2022.
Joe Lambert, President & Chief Operating
Officer, stated: “We are pleased and proud of the combined NACG
& Nuna team for achieving such a significant milestone in our
economic growth plans. This record award demonstrates the revenue
synergies and opportunities for growth and diversification that are
possible through our ownership interest in Nuna.”
Miles Safranovich, President & Chief
Operating Officer, Nuna Group of Companies, stated: “The award of
this project, a result of a strong and integrated effort with NACG,
further solidifies our strategy of taking Nuna’s unique brand of
remote project development and sustained Indigenous engagement to
major clients in eastern Canada.”
The bid process benefitted from the ownership
structure by offering both an Indigenous contractor with extensive
expertise in the harsh conditions of northern Canada together with
the heavy equipment fleet and maintenance experience offered by
NACG. As part of the contract award, Nuna and the joint venture
have partnered with local communities which will participate
directly in the project benefits received.
About the Nuna Group
of Companies
Nuna is the largest Inuit-owned heavy civil
construction, earthworks and mine construction contractor in Canada
and maintains a Certificate of Inuit Firm Status. Nuna’s client
base consists of resource companies whose projects span from
smaller public and private civil projects to multi-national,
full-scale projects. Nuna has a demonstrated commitment to hiring
Indigenous and local people who live in the areas where it does
business. Nuna is jointly owned in a 51-49 percentage by the
Kitikmeot Corporation and North American Construction Group Ltd.,
respectively.
More information on Nuna:
www.nunalogistics.com
About Kitikmeot
CorporationKitikmeot Corporation (“KC”) is owned by the
Kitikmeot Inuit Association (“KIA”). KC serves as the business arm
of the KIA and is entrusted to pursue opportunities that build an
economic base in the Kitikmeot region. Its primary focus is
successful business development that collectively benefits KIA and
the Inuit of the Kitikmeot region. KC is 100% Inuit-owned and
contributes to the KIA through an annual dividend that is used for
important social, cultural and training programs.
More information on KC: www.kitikmeotcorp.ca
About the CompanyNorth American
Construction Group Ltd. (www.nacg.ca) is one of Canada’s largest
providers of heavy construction and mining services. For more than
65 years, NACG has provided services to large oil, natural gas and
resource companies.
For further information, please contact:
Jason Veenstra, CPA, CAChief Financial OfficerNorth American
Construction Group Ltd.Phone: (780) 948-2009Email:
jveenstra@nacg.ca
The information provided in this release contains
forward-looking statements. Forward-looking statements include
statements preceded by, followed by or that include the words
“expected”, “estimated” or similar expressions, including the
anticipated values and schedule of work under the contract.
The material factors or assumptions used to
develop the above forward-looking statements and the risks and
uncertainties to which such forward-looking statements are subject
are highlighted in the Company’s MD&A for the year ended
December 31, 2019. Actual results could differ materially from
those contemplated by such forward-looking statements because of
any number of factors and uncertainties, many of which are beyond
NACG’s control. Undue reliance should not be placed upon
forward-looking statements and NACG undertakes no obligation, other
than those required by applicable law, to update or revise those
statements. For more complete information about NACG, please read
our disclosure documents filed with the SEC and the CSA. These free
documents can be obtained by visiting EDGAR on the SEC website at
www.sec.gov or on the CSA website at www.sedar.com.
North American Construct... (NYSE:NOA)
Historical Stock Chart
From Apr 2024 to May 2024
North American Construct... (NYSE:NOA)
Historical Stock Chart
From May 2023 to May 2024