Update - Eastern Goldfields Limited

Company News

GR Engineering Services Limited (ASX:GNG) (GR Engineering) refers to its announcement of 4 October 2018 confirming that it had agreed with Eastern Goldfields Limited (Eastern Goldfields) and others to vary the terms of the settlement deed in relation to the Davyhurst Gold Project refurbishment contract (Settlement Deed).

Under the Settlement Deed, as varied, the last instalment of the $8.25 million settlement sum is due to be paid on 30 November 2018. GR Engineering notes the announcement by Eastern Goldfields Limited today that its recapitalisation proposal will not proceed and that Eastern Goldfields is considering alternative transactions, which may include Eastern Goldfields entering into voluntary administration.

At this stage, GR Engineering has not received any advice from Eastern Goldfields on its capacity to fulfil its remaining obligations to pay the balance of $7.25 million which remains due under the Settlement Deed. GR Engineering will continue to inform the market as it receives clarity in relation to this matter.

ASX News Release 28/11/2018

ASX News Release 04/10/2018

Category: Company News