India’s record gold import said to be due to calculation error
Officials double-counted gold shipments in warehouses following a change in methodology in July, Bloomberg sources say.
NovaGold Resources said Thursday it plans to “vigorously defend ” a lawsuit filed against the company by Copper Canyon Resources Ltd (CCR).
The notice of claim filed by Copper Canyon “alleges that Copper Canyon’s right of first refusal with respect to the Copper Canyon property has been triggered as a result of arrangements between NovaGold and the Galore Creek Partnership, and seeks specific performance of the right of first refusal. NovaGold denies that the right has been triggered or that it has breached any obligations respecting the Copper Canyon property.”
Copper Canyon has also applied to the British Columbia Securities Commission (“BCSC”) seeking to cease trade NovaGold’s offer to acquire all of the outstanding Copper Canyon shares.
The conflict stems from a Dec. 20 2010 offer by NovaGold to pay CAD$34.1 million in shares to acquire the Copper Canyon copper/gold/silver property — which is 40% owned by CCR and 60% by NovaGold and Teck Resources.
The offer was rejected as too low by CCR’s board of directors, while NovaGold applied to the BCSC to have CCR’s shareholder rights program set aside.
As explained by Mining Weekly:
According to CCR, the transfer of the interest represented a change of ownership, and so the company argues that NovaGold failed to honour a right of first refusal for CCR to buy the stake.
The company wants the transfer reversed, and an order that NovaGold notify CCR of the price and terms of the transfer so that it can exercise the right of first refusal.
In a statement last week, NovaGold denied that the right of first refusal had been triggered or that it was in breach of any obligations to CCR.
The offer is scheduled to expire on March 8.
