Genesis Minerals (ASX:GMD) engaged GR Engineering Services (ASX:GNG) as the preferred contractor for the engineering, procurement, and construction contract for the mill at its Tower Hill gold project in Western Australia, according to a Monday Australian bourse filing.

The scope of work includes the design, procurement, construction, installation, and commissioning of an around 4 million tonnes-per-annum gold processing facility.

The estimated contract value is AU$225 million, and the contract is expected to be finalized in the March quarter, subject to the agreement of final terms and conditions.

Around AU$20 million of critical long-lead items will be ordered imminently, per a separate filing. The total anticipated capital cost is between AU$250 million and AU$280 million.

The shares of Genesis Minerals rose over 1% in recent trading on Monday, while those of GR Engineering fell 2%.