Kenmare Resources Partial Award Made By Tribunal In Connection With Aveng Arbitration
24 December 2016 - 3:45AM
UK Regulatory
TIDMKMR
Kenmare Resources plc ("Kenmare" or "the Company")
23 December 2016
Partial Award made by Tribunal in connection with Aveng Arbitration
As previously disclosed, Kenmare's operating subsidiaries Kenmare Moma
Mining (Mauritius) Limited) and Kenmare Moma Processing (Mauritius)
Limited (together, the "Project Companies") have been engaged in
arbitration proceedings with certain members of the Aveng Group (those
members, together, "Aveng") in relation to the performance and
completion of certain engineering, procurement and construction
management contracts entered into in connection with the expansion of
the Moma facilities in 2010.
In the course of the arbitration, Aveng had claimed that it had been
owed approximately ZAR 206 million, plus interest. The Project Companies
had counterclaimed for compensation for losses resulting from Aveng's
contractual breaches substantially in excess of the amounts claimed by
Aveng.
The arbitral tribunal has now made its award in relation to the merits
of the case: the tribunal finds that Aveng was entitled in July 2013 to
the amounts it has claimed but that Aveng caused the Project Companies
substantial losses as well. However, the tribunal found that Aveng's
liability for such losses is capped at ZAR150 million under contractual
limitations provisions. The net effect of the tribunal's finding is that
the Project Companies are required to make a payment of approximately
ZAR56 million to Aveng, plus interest accrued. Kenmare estimates that
the total payment required to be made by the Project Companies under the
award is approximately US$5 million. The Project Companies will be able
to meet the award from existing cash resources of the Group. Costs of
the arbitration will be the subject of further proceedings and a
separate award.
Kenmare Managing Director Michael Carvill commented: "Whilst we are
naturally disappointed that the Project Companies are required to make
payment to Aveng, we welcome the tribunal's endorsement of our position
that Aveng caused significant losses to the Project Companies. We also
note that the net amount payable on the merits of the case is
significantly less than the amount claimed by Aveng and the US$19.4
million accrued in respect of these amounts on the Group's balance
sheet."
This announcement contains inside information.
For further information, please contact:
Kenmare Resources plc
Michael Carvill, Managing Director
Tel: +353 1 671 0411
Mob: + 353 87 674 0110
Tony McCluskey, Financial Director
Tel: +353 1 671 0411
Mob: + 353 87 674 0346
Jeremy Dibb, Corporate Development and Investor Relations Manager
(the person responsible for arranging the release of this announcement)
Tel: +353 1 671 0411
Mob: + 353 87 943 0367
Murray
Joe Heron / Aimee Beale
Tel: +353 1 498 0300
Mob: +353 87 690 9735
Buchanan
Bobby Morse / Chris Judd
Tel: +44 207 466 5000
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Kenmare Resources via Globenewswire
http://www.kenmareresources.com/
(END) Dow Jones Newswires
December 23, 2016 11:45 ET (16:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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