Western Australia’s Supreme Court has ordered gold miner Eastern Goldfields be wound up and have a liquidator appointed to it.
The order comes in the same week that Eastern Goldfields announced that the first carbon-in-pulp (CIP) gold pour had been completed at the revived Davyhurst mining hub, 120km northwest of Kalgoorlie.
Trading of Eastern Goldfields’ shares has been suspended on the Australian Securities Exchange (ASX).
Mining services company GR Engineering last month launched proceedings against Eastern Goldfields in the Supreme Court of WA over a contractual dispute at the Davyhurst operation.
GR made the move to recover payments associated with the Davyhurst gold project refurbishment contract signed between the two companies in September 2016.
There are about 150 employees and contractors working at the Davyhurst site, which is producing again for the first time since 2008 when it was owned by Swan Gold Mining.
Eastern Goldfields has redeveloped Davyhurst behind chairman Michael Fotios.