23rd Dec 2009 09:53
FOR IMMEDIATE RELEASE 23 December 2009
allied gold limited
("Allied", "Allied Gold" or "the Company")
The following announcement as released on the ASX today and is set out for your information:
ALLIED GOLD LIMITED SUBSIDIARY COMMENCES DAMAGES CLAIM AGAINST INTERMET ENGINEERS (PTY) LTD AND MR GARRY THOMAS
Allied Gold Limited advises that its wholly owned subsidiary Simberi Gold Company Ltd ("SGC") has commenced legal recovery action against Intermet Engineers (Pty ) Ltd ("Intermet") and Mr Garry Thomas, a former director of Intermet, in respect to breaches of a contract entered into between Simberi and Intermet whereby Intermet were contracted to design, procure and manage the construction of gold processing and related facilities for the Simberi Oxide Gold Project located on Simberi Island in Papua New Guinea.
The agreement contained a number of express terms relevant to specific performance of the agreement and the successful delivery of the throughput pursuant to the design and specifications of the plant.
Simberi claims that Intermet is in breach of the express and implied terms of the contract and Intermet and Mr Garry Thomas have engaged in false, misleading and deceptive conduct.
By reason of the breaches of the express and implied terms of the agreement, Simberi has suffered loss and damage and accordingly has now lodged a claim in The Supreme Court of Western Australia for damages which is estimated to be not less than AUD$12 million in total as well as damages for contraventions of the Trade Practices Act, Fair Trading Act, interest and costs.
For further information, contact:
Allied Gold Limited
Mark Caruso
Executive Chairman
T:+61 8 93533638
Frank Terranova
Chief Financial Officer
T: +61 7 3252 5911
M: +61 448 187 557
Peter Torre
Company Secretary
T: +61 8 9287 4604
Beaumont Cornish Limited
Roland Cornish
Beaumont Cornish Limited
T: +44 (0) 20 7628 3396
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