Resource Development Group

Resource Development Group Limited provides diversified services to the resource, infrastructure and energy sectors within Australia and internationally.

 

RDG's main operating subsidiary, Centrals provides a 'whole of project' contracting service offering.

 

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Pacer and Silver Lake Resources Settle Dispute

Further to its announcement dated 8 April 2013, Resource Development Group Ltd (RDG) is pleased to advise that its subsidiary Pacer Corporation Pty Ltd (Pacer) has reached agreement with Silver Lake Resources Ltd (SLR) over a commercial dispute in the order of $21m (excluding GST) for certain work completed on the Tuckabianna gold project.

Under the terms of the relevant contract, Pacer was engaged to provide project management, engineering and construction services for the Tuckabianna plant, including the refurbishment and reuse of plant owned by SLR, with the contract being on a costs plus basis.

Pacer and SLR have now resolved the dispute between them on confidential terms and conditions contained in a Deed of Settlement and Release (Deed), without any admission of liability by either party.

Pacer has held discussions with its own sub-contractors and has entered into private arrangements with these parties to settle all outstanding amounts in relation to work provided on the Tuckabianna gold project.

Settlement under the Deed is expected to occur in mid May 2013, with Pacer continuing its normal business operations. The settlement will negatively affect Pacer’s profitability which means that RDG expect to deliver a full year profit at 30 June 2013 equal to that reported in its half year accounts at 31 December 2012.

In addition, Pacer continues to supply engineering and commissioning personnel under SLR management for the completion of the project.

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