Walkabout Resources Limited Announces Reduction in EPC Contract Commitments
consequential effect of reducing the rest of associated items including associated equipment, instrumentation and steelwork. The removal of the laboratory and consumable store buildings that are subject to a likely BOOT option with alternative service providers. The removal of the 4.5 MW diesel generator backup power facility from the EPC scope. Early indications are that the cost of a suitable emergency backup generating facility will be approximately 25% of the original costs. The aim is to source the generators locally. The future committed payments under the EPC contract total USD 2,685,130 including 5% retention and milestone payments that will only be paid after practical completion, successful commissioning and handover of the processing plant. Under the amended EPC contract less than USD 2 million is required to be paid to Jinpeng prior to practical completion of the Lindi Jumbo plant. To date Lindi Jumbo has paid for approximately 79% of the total EPC contract value which is a fixed price contract.