Intermin Resources Limited (ASX:IRC) and Resource Mining Dispute Settlement
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Intermin Resources Limited (ASX:IRC) ("Intermin" or "the Company") advises that a resolution has been reached with mining contractor Resource Mining Pty Ltd ("Resource Mining") over claims received by Intermin from Resource Mining relating to the recently completed Teal gold mine Stages 1 and 2.
The Teal Gold Mine was mined under a risk share - profit share structure with Resource Mining(see Note 1 below). Intermin and Resource Mining co-funding development on a 50:50 cost and risk share basis to first gold production, with the net operating cash flow thereafter as determined under the agreement between the parties to be shared 75% to Intermin and 25% to Resource Mining.
The Company outlined in its announcement to the ASX on 24 October 2018 that it had received cost variation claims from Resource Mining relating to Teal Stage 1 and Stage 2 and that the Company's Representative had made and delivered a determination in relation to the cost variation claims. The claims and the determination were not agreed between the parties and the Company reported that it was working to resolve this matter.
Intermin and Resource Mining have now agreed to a full and final settlement of this matter. The total disputed variation claims amount(see Note 2 below) was split on a 50:50 basis, while the remaining net operating cash was split 75% to Intermin and 25% to Resource Mining as originally agreed under the mining contract between the parties.
After disbursement of monies to both parties from the project joint bank accounts, Intermin's cash and investments (including GST credits) will total approximately A$7.8 million.
Notes:
1 As announced to the ASX on 19 July 2016
2 As announced to the ASX on 24 October 2018
Jon Price
Managing Director
Tel: +61-8-9386-9534
E: jon.price@intermin.com.au
Michael Vaughan
Media Relations - Fivemark Partners
Tel: +61-422-602-720
E: michael.vaughan@fivemark.com.au