Kenmare Resources Partial Award Made By Tribunal In Connection With Aveng Arbitration

 
TIDMKMR 
 
 
   Kenmare Resources plc ("Kenmare" or "the Company") 
 
   23 December 2016 
 
   Partial Award made by Tribunal in connection with Aveng Arbitration 
 
   As previously disclosed, Kenmare's operating subsidiaries Kenmare Moma 
Mining (Mauritius) Limited) and Kenmare Moma Processing (Mauritius) 
Limited (together, the "Project Companies") have been engaged in 
arbitration proceedings with certain members of the Aveng Group (those 
members, together, "Aveng") in relation to the performance and 
completion of certain engineering, procurement and construction 
management contracts entered into in connection with the expansion of 
the Moma facilities in 2010. 
 
   In the course of the arbitration, Aveng had claimed that it had been 
owed approximately ZAR 206 million, plus interest. The Project Companies 
had counterclaimed for compensation for losses resulting from Aveng's 
contractual breaches substantially in excess of the amounts claimed by 
Aveng. 
 
   The arbitral tribunal has now made its award in relation to the merits 
of the case: the tribunal finds that Aveng was entitled in July 2013 to 
the amounts it has claimed but that Aveng caused the Project Companies 
substantial losses as well. However, the tribunal found that Aveng's 
liability for such losses is capped at ZAR150 million under contractual 
limitations provisions. The net effect of the tribunal's finding is that 
the Project Companies are required to make a payment of approximately 
ZAR56 million to Aveng, plus interest accrued. Kenmare estimates that 
the total payment required to be made by the Project Companies under the 
award is approximately US$5 million. The Project Companies will be able 
to meet the award from existing cash resources of the Group. Costs of 
the arbitration will be the subject of further proceedings and a 
separate award. 
 
   Kenmare Managing Director Michael Carvill commented: "Whilst we are 
naturally disappointed that the Project Companies are required to make 
payment to Aveng, we welcome the tribunal's endorsement of our position 
that Aveng caused significant losses to the Project Companies. We also 
note that the net amount payable on the merits of the case is 
significantly less than the amount claimed by Aveng and the US$19.4 
million accrued in respect of these amounts on the Group's balance 
sheet." 
 
   This announcement contains inside information. 
 
   For further information, please contact: 
 
   Kenmare Resources plc 
 
   Michael Carvill, Managing Director 
 
   Tel: +353 1 671 0411 
 
 
   Mob: + 353 87 674 0110 
 
 
   Tony McCluskey, Financial Director 
 
   Tel: +353 1 671 0411 
 
 
   Mob: + 353 87 674 0346 
 
   Jeremy Dibb, Corporate Development and Investor Relations Manager 
 
   (the person responsible for arranging the release of this announcement) 
 
   Tel: +353 1 671 0411 
 
   Mob: + 353 87 943 0367 
 
   Murray 
 
 
   Joe Heron / Aimee Beale 
 
 
   Tel: +353 1 498 0300 
 
 
   Mob: +353 87 690 9735 
 
 
   Buchanan 
 
   Bobby Morse / Chris Judd 
 
   Tel: +44 207 466 5000 
 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Kenmare Resources via Globenewswire 
 
 
  http://www.kenmareresources.com/

(END) Dow Jones Newswires

December 23, 2016 11:45 ET (16:45 GMT)

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