Conico Ltd (ASX:CNJ) Updates on Arbitration Process
Arbitration Overview
Conico Ltd (ASX:CNJ) has provided an update concerning its arbitration with Cartwright Drilling Inc regarding invoices from its subsidiary, Longland Resources Ltd. The dispute involves an amount of C$1,419,203 (approximately A$1,564,500), which Longland has refused to pay due to the performance issues identified by the Board.
Arbitrator’s Decision
The arbitration, initiated in Newfoundland, has determined that Longland and Conico are liable to Cartwright for C$951,420.87 (approximately A$1,048,827). This amount includes C$727,955.53 for outstanding invoices related to drilling at Ryberg, alongside contractual interest. Additionally, Longland is liable for C$391,247.41 (approximately A$431,303) related to other drilling activities at Mestersvig. Furthermore, the counterclaim submitted by Longland has been dismissed.
Next Steps
Conico intends to appeal the arbitrator’s decision and seek a judicial review in the Supreme Court of Newfoundland and Labrador. The company is committed to keeping shareholders informed as the situation evolves.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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