GR Engineering Services has requested its shares be suspended from trading on the ASX while it assesses the impact of Eastern Goldfield’s now-retracted wind-up order, as well as a £7.5 million ($A12.2 million) bond claim notice lodged by Wolf Minerals.
GR Engineering entered a trading halt earlier this week when the Supreme Court of Western Australia ordered the wind-up of Eastern, which is seeking to claw back $10 million from after undertaking refurbishment work at the gold miner’s Davyhurst operation.
HLB Mann Judd was appointed as liquidators to Eastern on Wednesday following an application by Genalysis Laboratory Services, which was owed $383,000 by the company.
That money was paid, and Eastern directors took back control of the company yesterday.
Meanwhile, Wolf Minerals yesterday notified GR Engineering of its intention to seek $12.2 million from the company on the back of issues at its Hemerdon tungsten-tin mine in England, where the contractor was hired to build processing infrastructure.
Wolf began operating at Hemerdon in late 2015 after GR Engineering completed work at the site, but has since encountered issues at the processing facility including low frequency noise.
“Wolf has continued to develop technical solutions with its lead construction contractor, GR Engineering, to expedite a comprehensive LFN solution whilst meeting operational requirements during this important period of production improvements,” Wolf said in a statement.
“The company has assessed the costs of ongoing LFN rectifications and has decided to notify GR Engineering of its intention to recover these costs from the £7.5 million performance bond under the construction contract.
“The company is confident that the performance bond will be sufficient to cover the costs of implementing the technical solutions required to deliver a successful LFN outcome.”
GR Engineering expects to remain in a trading halt until Tuesday.
