GB MineralsLtd. paid £4.1 million to GBM Minerals Engineering Consultants Ltd.to settle a lawsuit filed against its unit GB Minerals Holdings Ltd.
The suit was filed in the Queen's Bench Division of the HighCourt of Justice in London over consultancy services provided to GB MineralsHoldings by GBM Minerals Engineering Consultants.
According to the settlement terms in the July 8 pressrelease, none of the companies and associated parties will have any obligationto GBM Minerals Engineering Consultants or any of its associated companies andparties to make any payment related to the services agreement between GBMinerals Holdings and GBM Minerals Engineering Consultants dated Jan. 18, 2010,the invoices, fees, costs, charges, disbursements or expenses of GBM MineralsEngineering Consultants and its associated companies and parties, and thesettlement deed, the amending deed and the debt settlement agreement betweenthe company, GB Minerals Holdings and GBM Minerals Engineering Consultants.
"The total settlement equates to circa C$6.9 milliondollars, versus the considerably larger liability of circa C$13 millionexpunged from the balance sheet of the company," GB Minerals President andCEO Luis da Silva said.
The executive also noted that the company is lowering thenet outflow of new funds from the company to C$5.4 million, with an amount ofC$1.5 million already held in escrow in relation to the claim.