Challenger dispute to drag on

A LEGAL battle between gold producer WPG Resources and its former underground contractor Pybar is set to continue for some time.

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Challenger

The Pybar contract at WPG's Challenger gold mine in South Australia was cancelled in August and Byrnecut appointed.

Pybar started court action in the Supreme Court of South Australia seeking A$8.7 million it said it was still owed.

WPG subsidiary Challenger Gold Operations hit back with a counterclaim of more than $9 million for losses including in respect to cost overruns, damage to property, losses caused by improper mining practices and for recovery of overcharges.

Following a confidential court-ordered mediation session held on February 23 Pybar made an application for the CGO counterclaim to be struck out and the matter listed on the supervised case list.

Those matters were heard by the court on May 8 and, not surprisingly, CGO resisted.

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