Develop Global (ASX:DVP) has awarded a mining services contract at Pioneer Dome to MLG Oz (ASX:MLG).
Develop’s share price has risen from around $3 in early 2025 to more than $6, following the restart of the company’s Woodlawn copper-zinc mine in New South Wales.
Develop’s other assets include the Sulphur Springs copper-zinc project and the Pioneer Dome lithium project.
Managing Director Bill Beament says that Pioneer is on track to generate cash flow in the December 2026 quarter, which adds to the revenue that the Woodlawn mine is already generating.
The board approved the final investment decision (FID) for Pioneer Dome on 10 June.
Now that it has awarded a $70 million mining services contract to MLG, Develop Global says it is also advancing plans for a potential underground extension of the direct shipping ore (DSO) operation.
Develop also has a binding offtake agreement with trading house Trafigura Group in place, as mining operations are scheduled to begin in August.
“Awarding this contract to MLG is a major piece of the Pioneer Dome puzzle. With our FID taken, Trafigura offtake locked in, all approvals in place and now our mining contractor appointed, Pioneer Dome is ready to go,” Beament says.
“This means we are very well-positioned to capitalise on the strong lithium market, particularly the surging demand for DSO material, with production and cash flow to ramp up in the December quarter.
“There is also potential to increase the resource grade, as demonstrated by the latest strong infill drilling results. These reveal consistently thick zones of more than 1.45% Li2O throughout both the planned open pit and underground.
“These high grades bode well for the impending updates to the resource model and mine plans.”
Beament previously helped build Northern Star (ASX:NST) into one of Australia’s largest gold producers.
Develop Global is likely to remain of interest to resource investors as Pioneer Dome advances towards production.
Write to Callum Newman at Mining.com.au
Images: Develop Global
