JOHANNESBURG (miningweekly.com) – ASX-listed Mount Gibson has reached an A$86-million settlement with its insurers for the property damage component of its insurance claim relating to the 2014 failure of the Koolan Island Main Pit seawall, in Western Australia.
The settlement amount included the A$1.85-million interim payment received in mid-2015, Mount Gibson reported on Thursday, adding that it expected the balance of the payments to be received by the end of next month.
“This significant property damage insurance settlement is a welcome outcome for Mount Gibson and all shareholders in the wake of the failure of the Main Pit seawall at Koolan Island,” commented CEO Jim Beyer.
The proceeds of the settlement would bolster the company’s cash position to continue to evaluate resource investment opportunities, including the potential to rebuild the Main Pit seawall.
The company would provide an update regarding the Koolan Island evaluation in the second half of 2016.