13/08/2018 - 14:42

GR wins $8.3m contract payout

13/08/2018 - 14:42

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GR Engineering Services will receive an $8.3 million payout from Eastern Goldfields, more than a year after launching proceedings in the Supreme Court in relation to a contract dispute at the miner’s Davyhurst operation.

GR Engineering was refurbishing the Davyhurst gold processing facility for Eastern Goldfields.

GR Engineering Services will receive an $8.3 million payout from Eastern Goldfields, more than a year after launching proceedings in the Supreme Court in relation to a contract dispute at the miner’s Davyhurst operation.

The payment comes as part of a deed of settlement, which the two companies have signed, after the matter was referred to arbitration in January this year.

GR Engineering will receive cash and scrip worth $8.3 million, which will be paid in three tranches.

Perth-based GR Engineering was seeking to recover $9.9 million plus interest and costs associated with outstanding progress and variation claims associated with its contract with the Michael Fotios-led Eastern Goldfields.

The company was contracted in September 2016 to bring the Davyhurst processing facility near Kalgoorlie out of care and maintenance, for $12.5 million.

However, GR said after variations for additional works, the scope of the work had grown to $18.5 million.

GR said it had completed work under the contract.

The company launched Supreme Court proceedings in July last year.

Shares in GR finished up 1.14 per cent at $1.34 each, while Eastern shares last changed hands at 11.5 cents each.

 

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