Copper Canyon Sues NovaGold for 100% Interest in the Copper Canyon Property and Applies to Cease Trade Novagold's Hostile Takeov
01 Março 2011 - 9:23PM
Marketwired
Copper Canyon Resources Ltd. ("Copper Canyon" or the "Company")
(TSX VENTURE: CPY) has filed a Notice of Civil Claim in British
Columbia Supreme Court against NovaGold Resources Inc. ("NovaGold")
and NovaGold Canada Inc. ("NovaGold Canada") seeking specific
performance of its right of first refusal to acquire the Copper
Canyon property. Copper Canyon has also applied to the British
Columbia Securities Commission seeking to cease trade NovaGold's
hostile takeover bid for all of the outstanding Copper Canyon
shares (the "NovaGold Offer").
Law Suit for 100% Interest in the Copper Canyon Property
Pursuant to an Option Agreement and a Joint Venture Agreement
with NovaGold Canada, Copper Canyon has a right of first refusal to
purchase NovaGold Canada's 60% interest in the Copper Canyon
property prior to sale of such interest to a third party. NovaGold
has disclosed in the NovaGold Offer and in its previous public
disclosure documents that it holds its 60% interest in the Copper
Canyon property in trust for the Galore Creek Partnership, a 50/50
partnership between NovaGold and Teck Resources Limited. Since
NovaGold has transferred its beneficial interest in the Copper
Canyon Property to the Galore Creek Partnership without first
honouring Copper Canyon's right of first refusal, Copper Canyon has
commenced a law suit against NovaGold and NovaGold Canada seeking a
declaration that the transfer is null and void and an order that
NovaGold Canada notify Copper Canyon of the price and terms of such
transfer so that Copper Canyon can exercise its right of first
refusal.
Application to Cease Trade NovaGold's Hostile Takeover Bid
The Company has also applied to the British Columbia Securities
Commission seeking an order to cease trading the NovaGold Offer on
the basis that it fails to disclose material information to Copper
Canyon Shareholders. This material information includes the current
Optimized Development Plan for the Galore Creek Project, which
locates strategic infrastructure necessary for the Galore Creek
Project on the Copper Canyon property. This material information
also includes the fact that the Galore Creek Partnership is the
beneficial owner of NovaGold Canada's 60% interest in the Copper
Canyon property.
The Board Reaffirms its Recommendation that Shareholders REJECT
the NovaGold Offer
The board of directors of Copper Canyon continues to reaffirm
its unanimous recommendation that Copper Canyon shareholders REJECT
the NovaGold Offer, and NOT TENDER their shares to the NovaGold
Offer. Further details on the Board's recommendation are contained
in the Directors' Circular, which has been filed on the SEDAR
website at www.sedar.com.
How to WITHDRAW Copper Canyon Shares from the NovaGold Offer
Copper Canyon shareholders who have deposited Copper Canyon
shares under the NovaGold Offer are urged to withdraw those Copper
Canyon shares. Please see the Directors' Circular for instructions
with respect to withdrawing your Copper Canyon shares or, for
additional information or assistance, please contact Mike Labach at
1 866 HUNT-ORE (486-8673).
The Board intends to communicate further with Copper Canyon
shareholders prior to the expiry of the NovaGold Offer as and when
material matters should arise.
About Copper Canyon
Copper Canyon Resources was created by way of a Plan of
Arrangement on June 9, 2006. Shareholders of Eagle Plains Resources
Ltd. (TSX VENTURE: EPL) approved the plan to reorganize the
company's mineral property assets in an effort to maximize
shareholder value. Under the terms of the arrangement, three of
Eagle Plain's projects: Copper Canyon, Severance and Abo (Harrison)
Gold, were transferred into Copper Canyon.
On behalf of the Board of Directors
Tim J. Termuende, President and CEO
This news release may contain forward-looking statements
including but not limited to comments regarding the timing and
content of upcoming work programs, geological interpretations,
receipt of property titles, potential mineral recovery processes,
etc. Forward-looking statements address future events and
conditions and therefore, involve inherent risks and uncertainties.
Actual results may differ materially from those currently
anticipated in such statements.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Contacts: Copper Canyon Resources Ltd. Mike Labach 1 866 HUNT
ORE (486 8673) mgl@copcanyon.com www.copcanyon.com
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