Develop Global (ASX:DVP) awards contract for Woodlawn processing plant upgrade

Develop Global Limited (Develop) (ASX:DVP) has awarded a A$25.7m contract to processing specialists GR Engineering Services (GRES) to upgrade and recommission the Woodlawn processing plant. This contract triggers the A$20m 'Final Investment Decision Milestone Payment' with the Woodlawn project vendor, OMF Fund II (H) Ltd (Orion). Develop will make a milestone payment to the vendor comprising A$10m worth of the Company's shares at a 5-day VWAP of A$2.08 per share and up to A$10m in cash.

Executive Commentary on Woodlawn Processing Plant Upgrade

Develop Managing Director Bill Beament said: 'We have contracted processing specialists GRES to upgrade and recommission the Woodlawn plant and we have already resumed underground development to ensure we are well ahead of the schedule. The recently updated project re-start study showed Woodlawn will generate outstanding cashflows and returns for our shareholders'.

Summary of Woodlawn Processing Plant Upgrade

Develop Global Limited (ASX:DVP) is on track to start production at its Woodlawn copper-zinc mine in mid-CY2025. The company has awarded a A$25.7m contract to GR Engineering Services (GRES) to upgrade and recommission the Woodlawn processing plant, triggering the A$20m 'Final Investment Decision Milestone Payment' to the project vendor. Develop will make a milestone payment to the vendor comprising A$10m worth of the Company's shares and up to A$10m in cash. The documentation of terms for the ~A$100m prepayment/loan facility with Trafigura is well advanced and on track for completion in the coming weeks. Woodlawn is expected to generate outstanding cashflows and returns for shareholders, with first production and cashflows anticipated in mid-CY2025.