06/05/2013 - 14:56

Silver Lake, Pacer settle cost dispute

06/05/2013 - 14:56

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Silver Lake, Pacer settle cost dispute

Gold miner Silver Lake Resources has settled a dispute with engineering contractor Pacer Corporation for works on the Tuckabianna gold project in the Murchison.

The dispute emerged following Silver Lake's partial payment of a January invoice from Pacer, after the contractor did not explain why the cost of constructon of the Tuckabianna plant had blown out by more than $20 million.

Pacer, a subsidiary of Resource Development Group, said today the dispute had been resolved on confidential terms without any admission of liability by either party.

The contractor will continue to provide engineering and construction personnel to Silver Lake to complete the project.

Pacer said it held discussions with its own sub-contractors and has entered private arrangements to settle any outstanding amounts relating to work completed at Tuckabianna.

The settlement, however, will negatively impact Pacer’s profitability, which will result in owner Resources Development Group’s full-year profit for 2013 remaining around $2.3 million.

RDG managing director Jeff Brill said the dispute was never one of a technical nature, and having settled the case the company could now focus on its core business of engineering, procurement and construction.

RDG shares last traded at 7 cents, while Silver Lake Resources’ stock was down 3 per cent, at 99 cents.

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