VALMEC Limited (ASX:VMX), formerly Core Services Group (ASX:CRV), has received a letter of intent from APA Group for construction of its Eastern Haul Wallumbilla works in South East Queensland.
The proposed contract is valued at $10.2 million, with mobilisation to site expected by the end of the month, subject to completion of the necessary approvals and contract negotiations.
The company already has a significant pipeline of new projects already awarded for the 2014 calendar year, and is positioned to convert further project opportunities from its expanding tender pipeline.
These are significant numbers, with VALMEC capitalised at around $12 million.
In January, the company completed an all-scrip acquisition of Marcon Group, a Western Australia-based company that also provides construction and engineering services to the energy, resources and infrastructure sectors.
VALMEC issued $3.6 million in shares and could issue a further $7.1 million in shares, subject to the achievement of $5.4 million EBIT for financial year 2014.
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