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Gemini (V.GKX) up 11% on letter agreement for major oil rail loading facility design-build

Gaalen Engen Gaalen Engen, Stockhouse.com
0 Comments| May 14, 2014


Gemini (TSX:V.GKX, Stock Forum), a Calgary-based provider of engineering, fabrication and maintenance solutions for western Canadian energy and industrial facilities, announced today that the company had entered into a letter of agreement with a key client for the design and construction of a major oil loading facility to be located in Western Canada.
 
According to the news release, the agreement outlined the terms and conditions where which the company and its client will finalize the contract for the engineering, procurement and construction of the facility.
 
Gemini is currently wrapping up front end engineering design work on the project under the existing agreement with the client. Existing contractual conditions prevent the company from revealing the client or the value of the project.
 
Scheduled completion of the facility is expected sometime mid-2015, barring unforeseen delays, with the majority of the detailed design engineering and related procurement service revenue anticipated to be realized in 2014 and the bulk of construction and commissioning revenue expected to be transacted in 2015.
 
Company president and CEO, Doug Lautermilch, commented on the deal, “This is an important project for Gemini and our client, given the challenges that continue to exist for the export of oil from Canada.”
 
He then concluded, “We are extremely pleased that our client has seen the value in Gemini's design-build capability for this large project and we are looking forward to working closely with them to achieve a successful result.”
 
Gemini was in the news recently when the company finalized a purchase agreement with ONYX Drafting Services mid-March.
 
Shares rose 11.69% on the news to $0.86 per share.
 
Currently there are 55.9m outstanding shares with a market cap of $48.1 million.


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