Bemex and Crescent Gold head to court

Relations between Perth-based Crescent Gold Ltd and its former contractor Bemex Corporation Pty Ltd have soured as the companies head to court to resolve a $3 million dispute.

Last week, Bemax issued a summons to Crescent Gold to appear in the Supreme Court in a bid to resolve a dispute over invoices totalling $3 million incurred when Bemex was employed to construct and refurbish, as well as operate, the Laverton gold project.

The Laverton contract was terminated by Crescent in July 2007.

"After careful consideration the company decided to enhance its management of the Laverton Plant, and on 25 July 2007, gave 90 days notice to terminate the Operations Maintenance Management Service Agreement with Bemex Pty Ltd," Crescent said in its September quarter report.

"The company believes it has sound legal basis for disputing these invoices and therefore has given notice of its intended appearance and will continue to defend its position," Crescent said in a statement issued on Friday.