8th Dec 2015 08:04
LONDON (Alliance News) - Aureus Mining Inc Tuesday said it has received a request for arbitration from a company that previously held a contract to conduct work on the New Liberty gold mine, but said the request is without merit.
The request has been filed by International Construction & Engineering, which had won a contract from Aureus to carry out civil and earthworks at Aureus' New Liberty gold mine in Liberia.
The contract awarded by Aureus to International Construction & Engineering was terminated in August 2014, when only 60% to 70% of the work to be carried out by ICE was completed. Aureus terminated that contract "having taken the appropriate legal advice," it said.
Aureus said other workers and contractors supervised by its construction management contractor DRA Projects (PTY) Ltd had to finish the work that was not completed by ICE before the contract was terminated.
Aureus did not state exactly what ICE has filed the request for, but it is likely the company felt the contract was unlawfully terminated.
"The company strongly believes that the request is frivolous, without merit and opportunistic. Although the Company has not received sufficient details to substantiate ICE's claim, based upon a review of the contents of the request and the relevant facts, Aureus' management believes that no material amount will be found payable to ICE," said Aureus in a statement.
"Aureus intends to vigorously defend itself against the claims made by ICE and believes that this disclosure of such request will facilitate the timely conclusion of this matter. The company also confirms that this request will have no impact on its operations at New Liberty," added Aureus.
By Joshua Warner; [email protected]; @JoshAlliance
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