GR Engineering in legal battle with Allied

Company News

GR Engineering Services Limited (ASX:GNG) and dual listed Allied Gold Mining Plc (ASX:ALD) are locked in a legal battle concerning work at the Gold Ridge goldmine in the Solomon Islands.

GR Engineering has been hit with a disputed contract claim from Allied Gold worth $47 million, almost a third of GR Engineering’s market capitalisation.

GR says it is continuing to pursue the recovery of about $4.5 million which it believes it is owed from Allied Gold’s subsidiary, Gold Ridge Mining.

In the first half of the 2012 financial year, GR Engineering Services reported a net profit of $6.7 million.