The contract, which is contingent on Sandfire being granted a mining licence for the Motheo Project, will cover seven years and three months with a provision for a one-year extension, said Perenti.

Motheo's Definitive Feasibility Study has a base case of a 3.2Mtpa operation with expansion potential.

Perenti's pre-production work is expected to commence in late 2021 with mining to commence in early 2022.

Perenti Managing Director and Chief Executive Officer Mark Norwell said adding Motheo to the Perenti project portfolio is the company's ability to leverage an existing in-region operational presence at the Khoemacau Zone 5 project, where Perenti, through its subsidiary Barminco, is currently engaged to undertake underground mine development works.

Perenti's Mining chief executive officer Paul Muller said "We are also excited by the opportunity to deploy future-focussed mining technology initiatives on this project that will not only provide expected productivity and safety benefits to Sandfire but are also aligned with helping to achieve our combined sustainability goals."