GR Engineering to continue legal action

GR Engineering Services says it will continue to pursue legal action against Eastern Goldfields in relation to a contract for refurbishment at the miner’s Davyhurst operation, despite the Supreme Court yesterday referring the matter to arbitration.

Perth-based GR Engineering was seeking to recover $9.9 million plus interest and costs associated with outstanding progress and variation claims associated with its contract with the Michael Fotios-led Eastern Goldfields.

Justice Paul Tottle yesterday supported an application from Eastern to have the proceedings stayed and ordered GR Engineering to pay the miner’s costs for the court application.

“GR Engineering intends to continue pursuing the full amount of its claims, both in the Supreme Court and via arbitration,” the company said in a statement to the ASX today.

The company was contracted in September 2016 to bring the Davyhurst processing facility near Kalgoorlie out of care and maintenance, for $12.5 million.

However, GR Engineering said after variations for additional works, the scope of the work had grown to $18.5 million.

GR Engineering said it had completed work under the contract.

Shares in GR Enginerring were up 2 per cent to $1.45 at the close.