IMC Exploration Group plc (LSE:IMC) announced that its wholly owned mining subsidiary ASSAT has signed a contract with mining and geological consultancy TTH to advance the Karaberd underground mining project in Armenia.
The gold and silver explorer said the deal covers three work streams: rebuilding the site laboratory to process up to 30 samples a day, drawing up a further exploration programme, and preparing the surface for underground operations, including relocating up to 5,000 tonnes of rock and ore.
The contract carries a gross estimated value of approximately AMD 75 million, around €178,500, split between fixed fees for the laboratory and exploration work and a performance-linked structure for the surface preparation.
ASSAT will pay an initial AMD 20 million advance, approximately €47,600, against an estimated AMD 50 million total for the surface works, with TTH's final fee on that component capped at 20% of profit from processing the extracted ore.
Armand Pinarbasi, ASSAT chief executive, said upgrading the laboratory's throughput would speed up assay turnaround, while the rock relocation clears the physical path for underground development.
The group is targeting 50kg of gold production over the next 12 months from its Megradzor and Masis plants, aided by three additional electrodes at Masis, alongside a separate plan to add 50kg of annual silver output following a plant visit to Italy's International Industrial Show.
Chairman Eamon O'Brien said the contract increases "the likelihood that we will achieve our 50kg annual gold production milestone."