re: Ann: EnviroGold subsidiary claims damages... A delay they...

re: Ann: EnviroGold subsidiary claims damages... A delay they cannot afford. Could go under in 2009.

Sydney - Monday - December 1: (RWE Aust Business News) - Las
Lagunas Ltd (LLL), a wholly owned subsidiary Envirogold Ltd (ASX:EVG),
has lodged a Statement of Claim against Intermet Engineering Pty Ltd
(IME) in the Federal Court.
The Claim is seeking damages against IME for $US9.094 million and
$A5.509 million for breach of contract and misleading and deceptive
conduct in relation to the provision of engineering and procurement
services for the Las Lagunas gold tailings project in the Dominican
Republic.
IME has notified LLL of a claim for $1,341,000 unpaid fees.
Las Lagunas terminated IME's contract on November 12.
Envirogold's executive chairman, Brian Johnson, said that
construction of the project would not now be able to commence until next
October, at the beginning of the next dry season in the Dominican
Republic, and after outstanding engineering and final construction
costings are completed.
Project financing by Macquarie Bank is able to be drawn down
until March 31, 2010.
Establishment of the proposed joint venture to undertake the
project will be deferred until a higher level of certainty is reached in
relation to project construction costs and forward gold prices.