Eastern Goldfields Ltd. said Aug. 13 that it signed a settlement deed with GR Engineering Services Ltd. related to arbitration proceedings over the refurbishment contract for its Davyhurst gold project in Western Australia.
The settlement will involve a payment of A$8.25 million in three tranches to GR Engineering in cash and Eastern Goldfields shares.
In July 2017, GR Engineering filed a A$9.9 million claim in the Supreme Court of Western Australia against Eastern Goldfields to recover payments related to refurbishment work on the Davyhurst project. In January, the court referred the proceedings to arbitration and granted a stay.
Earlier this month, Eastern Goldfields entered into a standstill agreement with Investec Australia Ltd. after failing to make a repayment of A$5 million plus accumulated interest to Investec on Aug. 1.