- Empire Resources had been in dispute with Eastern Goldfield Milling Services Pty Ltd.
- The dispute was regarding the Toll Treatment Campaign by EGMS of ore from ERL’s Penny’s Find Gold Mine.
- ERL and EGMS have agreed to a confidential settlement of matters put up in the Arbitration.
The dispute was regarding gold unaccounted for after a toll treatment milling campaign that EGMS undertook at its Burbanks Gold Processing facility in late 2017. The ore was from ERL’s Penny’s Find Gold Mine.
Currently, ERL is entitled to receive royalty payments on gold produced from the Penny’s Find Gold Mine to a maximum of 5% of gold recovered up to 50,000 oz and 2.5% on gold produced beyond this level.
Source: ERL Website
ERL operates Penny’s mine in a joint venture with Orminex Limited (ASX:ONX) and Horizon Minerals Ltd (ASX:HRZ) with an aim to arrive at a decision for the mine’s development in the ongoing September quarter.
As per the June quarter update, ERL sought to recover gold worth more than AU$1 million, and the matter was referred to Arbitration. Moreover, an arbitration hearing was held in early March 2021, and the Arbitrator awaited additional submissions from ERL and EGMS before arriving at a final decision.
Source: © Zimmytws | Megapixl.com
Lately, all disputes between ERL and EGMS have been resolved, and the parties have agreed to a confidential settlement of concerns put forward in the Arbitration. Moreover, the parties have also agreed to monies payable between them in relation to the Toll Treatment Campaign.
Consequently, the Arbitration proceeding ended on 14 September 2021.
As a mineral exploration and resource investment company, ERL has been focusing on capturing value through direct exploration of its projects and identifying value accretive investment opportunities.
The Company looks to continue further development of the Penny’s Mine across 2021.
ERL stock was noted at AU$0.012, up by 9.09%, on 16 September 2021.