Graña Y Montero Awarded New Contract In Colombia

(RTTNews) - Graña y Montero S.A.A. (GRAM), an Engineering and Construction company, Friday announced the award of a new contract in Colombia.

The company's subsidiary, STRACON GyM, specialized in services for the mining sector, will be in charge of the construction and operation of the San Ramon Gold Mine, located in Medellin, Colombia.

Once this mine is built, it will be one of the major mines in that country.

The mine, owned by the Canadian company Red Eagle Mining Corporation, has initiated the development of the gold deposit and plans to start production in 2016.

"We have reached an agreement with Red Eagle Mining Corporation, for which we have been awarded the service contract for an amount of US$ 155 million to develop and operate for a period of eight years the San Ramon mine," said Steve Dixon, Chief Executive Officer of STRACON GyM.

As part of this agreement, STRACON GyM has acquired shares from Red Eagle Mining for $3.5 million. In addition, after signing the contract, a new purchase of shares for the same amount will be executed, with which a minority stake of 19.94 percent will be obtained.