SigmaRoc PLC (LON:SRC) said its Belgian subsidiary, Carrières du Hainaut (CDH) has signed an agreement with the Walloon government to co-fund infrastructure works in the context of its quarry extension project at the town of Soignies.
The construction materials group said CDH will fund €700,000 of the estimated €3mln project, which is expected to commence later this year and consist of the displacement of two sections of public road currently separating 116 hectares of CDH's 351 hectares of permitted land and minerals from its main quarry site.
SigmaRoc said once these works are finalised CDH will begin installing a new crushing and screening plant, enabling it to move forward with extracting construction aggregates and high-grade limestone at the extension area.
"This is an essential step for the future of CDH. The extension aims to secure access to our, thus far unexploited, blue stone reserves, a necessary condition for the CDH to continue its activity for several generations. We would like to thank the Walloon region for its support which enables us to guarantee the continuity of the business", SigmaRoc chief executive Max Vermorken said in a statement.
SigmaRoc shares were 1.2% higher at 44p in early trading on Friday.