Develop Global (ASX:DVP) is trading nearly 10 per cent higher following its news about starting underground work at Bellevue Gold’s (ASX:BGL) mine in Western Australia.
The contract follows the agreement signed last month, where Develop’s underground services division will undertake construction, development and production activities at the underground mine.
The agreement is valued at $400 million and covers a period of almost four years.
Separately, Develop is set to acquire Premium Mining & Civil and Premium Mining Personnel for $7.46 million less net debt.
Develop said the acquisition bolsters its capabilities in providing underground expertise and equipment, both of which are in extremely high demand.
Under the letter of intent, the parties have agreed to negotiate and enter a formal share sale agreement to formalise the acquisition.
Shares in Develop Global (ASX:DVP) are trading 9.8 per cent higher at $2.59.