Specialist resources services provider Babylon Pump & Power Limited (ASX: BPP) has secured an agreement for supply of goods and services with Premier Coal Limited.
The agreement is for overhaul of Premier engines, supply of service exchange engines and labour to support as required.
Based on quotations supplied and anticipated schedule provided, Babylon estimates the total revenue over the three-year term plus possible one-year extension to be c$16 million.
Some key terms of the agreement are:
- The agreement is structured as a framework supply agreement and does not constitute a binding minimum commitment by Premier
- Three-year initial term, with a commencement date of January 3, 2022
- One-year extension by written notice by Premier
- No fault termination by Premier with 30 days’ notice
- Anticipated schedule included in the agreement specifies 44 engines over three-year term plus possible one-year extension
Executive Chairman, Michael Shelby, said the Board of Babylon is excited by this significant opportunity granted by Premier.
