Announcements - 23 December 2009
Settlement Deal Agreed with Contractor
Kenmare is pleased to announce that it has entered into a Deed of Final Settlement and Release (“Deed of Settlement”) with Multiplex Bateman Joint Venture (MBJV), who were employed as contractor to build the Moma Titanium Minerals Mine in northern Mozambique. Under the terms of the Deed of Settlement all outstanding rights, obligations and liabilities of all parties under the Engineering, Procurement and Construction Contract and related agreements have been mutually settled and released.
Leading to the final settlement, Kenmare has been paid US$10 million and will keep all amounts currently held on retention totalling approximately US$12 million. In addition, MBJV has waived invoice payments totalling US$8.5 million and other rechargeable costs due to MBJV under the contract. Delay damages of US$20 million were also withheld from invoices and certain reimbursable costs submitted by the contractor. The Deed of Settlement is final in all respects.
Charles Carvill, Chairman said, “We are very pleased with the settlement agreed with the contractor. It allows Kenmare to move on with establishing Moma as a robust and well-performing mine.”
For more information:
Kenmare Resources plc
Michael Carvill, Managing Director
Tel: +353 1 671 0411
Mob: + 353 87 674 0110
Murray Consultants
Jim Milton/Joe Heron
Tel: +353 1 498 0345
Mob: + 353 86 255 8400
Conduit PR Ltd
Charlie Geller
Tel: +44 207 429 6666
Mob: +44 797 0067320
