Conclusion of Outstanding Litigation Matters
Brisbane, May 16, 2014 AEST (ABN Newswire) - The Board of Directors of Southern Cross Goldfields Limited (
ASX:SXG), ("SXG" "Company") is pleased to announce that all outstanding litigation matters that the Company and its subsidiaries are a party to have now been concluded.
Polymetals Mining Limited ("Polymetals") (ASX:PLY), a wholly owned subsidiary of SXG acquired in the 2013 merger, has been the subject of litigation brought by Peak Gold Mines Pty Ltd ("Peak") in 2009.
The Company is pleased to announce that the parties have now settled the claim for $5.2 million made by Peak on terms including orders that the proceedings be dismissed. The Company has incurred no financial impact from the transaction as it has been fully indemnified against all costs incurred from the litigation through arrangements arising before and at the time of the merger with Polymetals.
The Company will now be able to remove this contingent liability from its financial statements (refer December 2013 Half Year Report page 13). This will simplify any future equity dealings that the Company may undertake.
Following on from the successful settlement of the litigation with Eclectic Investments Pty Ltd in April 2013, the Board acknowledges the diligence and support of its legal advisors on these matters, Cooper Grace Ward, and recognises the contribution of Mr David Sproule, Polymetals founder and SXG Non-executive director, who has shepherded these legacy Polymetals litigation matters to successful conclusion.
Contact
Frank Terranova
Managing Director
Southern Cross Goldfields Ltd
Tel: +61-7-3236-2511
E-mail: frankt@scross.com.au
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