Orbite settles dispute with contractor, shares slide
TORONTO (miningweekly.com) – French media have reported that alumina process innovator Orbite Aluminae, this week, settled a dispute with contractor Gastier Montreal, which claimed $16-million for work it had not been reimursed for.
Gastier obtained a legal mortgage on the new Orbite plant, which cost about $40-million to build, Argent reported.
In December, Orbite refused to pay certain bills, saying that some of the contractor’s work did not meet its specifications. It added that bills also seemed to exceed the terms of the contract.
The dispute settlement was concluded with Gastier on May 15, and provided for the payment of $14.3-million, including a lump sum of $3.6-million. The remaining amount would be paid in cash, common shares or a combination thereof, at the discretion of Orbite, by no later than July 30.
Gastier had also agreed to lift its legal mortgage on the facilities after the remaining amount had been settled.
Orbite, which released its results on Wednesday, reported a net loss of $500 000, or $0.003 a share, for the quarter ended March 31, compared with a net loss of $3.8-million or $0.02 a share in the same period a year earlier.
“When Orbite began shipping customer samples of high-purity alumina during the reporting period, we achieved a major milestone that we have been working towards for several quarters.
“Looking ahead, we intend to build on our first-quarter momentum by improving the purity and capacity of our high-purity alumina plant and advancing our proposed red mud remediation and smelter-grade alumina projects,” Orbite president and CEO Richard Boudreault said.
Since Monday, the company’s TSX-listed stock had declined by 32% to trade at C$0.66 apiece on Friday morning.
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