The company entered into a letter of intent to acquire the businesses for A$7.46 million less net debt, to be satisfied by $300,000 in cash and the balance in Develop shares.
The Premium Group is controlled by Paul Allison though Beament is a minority shareholder of Premium Mining Personnel and will receive roughly 10% of the total consideration.
No up-front cash consideration will be payable to Beament.
The deal will require shareholder approval once a formal agreement is signed.
The Premium Group currently provides recruitment, equipment hire and contracting services to many large WA and overseas mining clients.
The company is based in the industrial Perth suburb of Midvale but also has an office in Kalgoorlie.
Develop is building its own underground mining contracting business alongside the development of its own projects.
Its first mining contract is a four-year, $400 million contract for Bellevue Gold’s new Bellevue mine in Western Australia’s Goldfields.
Develop started work on the contract, which includes construction, development and production, this week.
“We have established a world-class team of highly experienced underground mining specialists,” Beament said.
“Our team includes leading managers in their respective areas and an enviable group of underground mining and maintenance personnel, backed up by the latest mobile equipment.
“Our people, combined with the outstanding management team at Bellevue, will ensure we maximise the huge opportunity offered by the high-grade Bellevue orebody.”
The 200,000 ounce per annum Bellevue mine is due to produce first gold in the middle of 2023.
