JOHANNESBURG (miningweekly.com) – ASX-listed gold developer Stonewall Resources said on Monday that it had been awarded damages in a case involving the sale of its South African assets to Shandong Qixing Iron Tower.
An arbitral tribunal appointed under the rules of the Hong Kong International Arbitration Centre has determined that Shandong has to pay Stonewall $12.6-million and interest on that amount at 8%, compounded quarterly, starting on January 1, 2015, as well as legal, tribunal and administration costs.
The claim arose from the termination of a share sale agreement, announced in November 2014.
Stonewall chairperson Trevor Fourie said that the arbitral tribunal had accepted a 2014 valuation of $127.5-million for Stonewall’s South African gold assets, which is significantly higher than the current value placed on these assets by the market.
He added that the damages claim payment would inject over A$10-million cash into its balance sheet, which Stonewall would use towards developing its South African operations.
“Our immediate focus is on the recommencement of gold mining and production at our Pre-Mined Residue (PMR) project to generate early cash flow and earnings for our shareholders,” Fourie said.
Stonewall is focusing on the development of the near-term PMR gold project, targeting 25 000/y by 2017.