Allied Gold Limited
ASX : ALD
AIM : AGLD
TSX : ALG

Allied Gold Limited

December 23, 2009 09:26 ET

Media Release: Allied Gold Announces Damages Claim Against Intermet Engineers (Pty) Ltd. and Mr. Garry Thomas

TORONTO, ONTARIO--(Marketwire - Dec. 23, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Allied Gold Limited ("Allied Gold" or the "Company") (TSX:ALG)(ASX:ALD)(AIM:AGLD) announces that its wholly-owned subsidiary Simberi Gold Company Ltd ("SGC") has commenced legal recovery action against Intermet Engineers (Pty) Ltd. ("Intermet") and Mr. Garry Thomas, a former director of Intermet, in respect to breaches of a contract entered into between SGC and Intermet whereby Intermet were contracted to design, procure and manage the construction of gold processing and related facilities for the Simberi Oxide Gold Project located on Simberi Island in Papua New Guinea.

The agreement contained a number of express terms relevant to specific performance of the agreement and the successful delivery of the throughput pursuant to the design and specifications of the plant.

SGC claims that Intermet is in breach of the express and implied terms of the contract and Intermet and Mr. Garry Thomas have engaged in false, misleading and deceptive conduct.

By reason of the breaches of the express and implied terms of the agreement, SGC has suffered loss and damage and accordingly has now lodged a claim in The Supreme Court of Western Australia for damages which is estimated to be not less than AUD$12 million in total as well as damages for contraventions of the Trade Practices Act (Australia), Fair Trading Act (Australia), interest and costs.

ACN 104855067

The TSX has not reviewed, and does not accept responsibility for, the adequacy or accuracy of this release.

Contact Information

  • Allied Gold Limited
    Mark Caruso
    Executive Chairman
    +61 8 93533638
    or
    Allied Gold Limited
    Frank Terranova
    Chief Financial Officer
    +61 7 3252 5911 or M: +61 448 187 557
    fterranova@alliedgold.com.au
    or
    Allied Gold Limited
    Peter Torre
    Company Secretary
    +61 8 9287 4604
    peter@torrecorporate.com.au