NV5 Wins Iron Ore, Gold and Diamond Exploration Contracts for RIMCO Project
NV5 Global, Inc. (the "Company" or "NV5") (NASDAQ: NVEE), a provider of professional and technical engineering and consulting solutions, announced today that it was selected by Resource Improvement and Manufacturing Company Limited (RIMCO), a major subsidiary of the Chicason Group, to provide technical services for gold, diamond and iron ore exploration over several concessions held by RIMCO in West Africa.
The overall work scope involves a multi-phase approach initiated by a reconnaissance survey that will result in a bankable feasibility study. The Phase 1 program includes an integrated geological-geochemical-geophysical and geomorphological survey focused on airborne magnetic and radiometric work and geological mapping. The Phase 2 program will further define potential drill targets based on studies of primary and secondary gold and diamond deposits in terms of lode, alluvial, and alluvial deposits for gold, kimberlite, and diamond.
The overall contract value for all phases of the project will exceed $3 million. Contractually, NV5 will receive advance payment for all sub-phases of any given part of this project, with a 30% pre-payment for program initiation to minimize contractor risk in a mutually agreed manner.
The Chicason Group is a growing multi-billion dollar corporation with principal activities that include manufacturing, construction, oil and gas, real estate, mining, transport, travel and leisure, and healthcare. International finance and natural resources experts have pointed to Chicason's recent procurement of an $80 million line of credit from Afriexim Bank as well as the strong mining outlook for gold and diamonds to assess the Company's financial health. They have concluded that Chicason is well positioned to capitalize on calculated opportunities to build up sound proven resources reserves and to identify small and medium sized mineable projects ripe for near future production.
Dickerson Wright, PE, Chairman and CEO of NV5, said, "Our talented technical professionals are constantly approached with lucrative international opportunities and we have developed a rigorous vetting process that allows us to engage in a small number of opportunities that meet our strict financial and health and safety criteria. NV5 does not engage in construction projects overseas, and we do not work on any projects where the outcome or fee is at risk. Our Mining Services Group based in Albuquerque has a long-standing relationship with RIMCO and we are pleased that they continue to approach us for our services."
Paul Fensterer, COO of Nuclear and Environmental Services at NV5, added, "We are excited about the opportunity to provide higher-end mining services for a major international resource development conglomerate such as RIMCO/Chicason Group. Due to our long-standing client relationship through NV5's international mining expert Dr. Andy Chakrabarti, combined with the experienced leadership provided by our Mining Services Group manager Mike Hulst, who has managed professional services on complex mining projects, NV5 is uniquely positioned for a very successful and potentially long term engagement on this significant project with our Client."
Andy Chakrabarti, PhD, Senior Consultant at NV5, elaborated, "I have known and worked closely with the Chicason Group for several years, in their mining as well as in the oil and gas sectors. The company's resources portfolio, through RIMCO, is very substantial and it is a privilege to work with Chicason via NV5, an engineering group of international repute. Proximity of RIMCO's concessions to known gold, diamond and iron ore areas is of particular interest, and within the broad regional framework, conducive to such mineralization, of economic interest."
About RIMCO Mining is a growing part of the Chicason Group and since 1999, the Group has invested heavily in research and development efforts. Through its wholly owned subsidiaries, RIMCO holds 34 barite mining concessions in three states and a quarry site in Abuja is being established to produce some 300 tons an hour of aggregates from gneiss. RIMCO has launched a regional prospecting campaign employing remote sensing and electrical resistivity to increase its barite reserves. RIMCO is strategically positioned for more opportunities in industrial minerals, dimension stone and heavy minerals. In West Africa the Group has various exploration licenses where the ground shows promise of iron, gold and diamond mineralisation. During 2014 a core drilling rig was moved inland and RIMCO's field geologists are in the initial phase of reconnaissance mapping. The Group continues to seek opportunities in heavy minerals, precious metals and gemstones throughout West Africa.
About NV5 NV5 Global, Inc. (NASDAQ: NVEE) is a provider of professional and technical engineering and consulting solutions to public and private sector clients in the infrastructure, energy, construction, real estate and environmental markets. NV5 primarily focuses on five business verticals: construction quality assurance, infrastructure, engineering and support services, energy, program management, and environmental solutions. The Company operates 54 offices in Arizona, California, Colorado, Connecticut, Florida, Iowa, Illinois, Massachusetts, Maryland, Minnesota, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, Texas, Utah, Washington, Wisconsin and Wyoming, and is headquartered in Hollywood, Florida. For additional information, please visit the Company's website at www.NV5.com. Also visit the Company on Twitter, LinkedIn, Facebook, and Vimeo.
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