Company News Summary
Allied Gold Mining Announces $47m Claim Filed Against GR Engineering Services
Original announcement: $47m Claim Filed Against GR Engineering Services Limited
Allied Gold Mining advised that further to GR Engineering Services' (GRES) release of 5 June 2012 in which it disclosed that a counterclaim of approximately $25m by Gold Ridge Mining (GRML), a wholly-owned subsidiary of the company, for amongst other things, loss of gold production had been brought before the Arbitrator, the actual amount that has been brought before the Arbitrator is approximately $47m comprising: $4m on account of rectification costs; $1.15m on account of false and misleading statements by the GRES managing director; $24.9m on account of gold loss; and $17.1m on account of throughput loss arising directly from defective work carried out by GRES. GRML is in the process of carrying out the work recommended by the independent experts to meet the GRES warranty design criteria of 91% gold recovery and 2.5Mtpa throughput and has claimed those costs from GRES as part of the Arbitration.
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