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Salmon River defends loan lawsuit, blames Noble

2014-10-30 12:48 ET - Street Wire

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by Mike Caswell

Salmon River Resources Ltd. denies that it owes anything to Rigdon Ltd., a British Virgin Islands company that is suing it in the Supreme Court of British Columbia over a $2-million loan. (All figures are in U.S. dollars.) According to Salmon River, the party that should be responsible for repaying any money is Noble Group Ltd., a public company that trades in Singapore. It and Salmon River were in an iron-ore joint venture that failed, and Salmon River blames Noble for that failure.

Salmon River is responding to a notice of claim that Rigdon filed at the Vancouver courthouse on Sept. 4, 2014. The brief suit claimed that Rigdon had advanced $2-million on Feb. 7, 2012, and that Salmon River failed to repay any amount. With interest, the total due was $2,647,016, Rigdon said. It sought court-ordered payment of that amount.

The circumstances of that loan, however, were far more complex, and responsibility for repayment ultimately does not rest with Salmon River, the company claims. In a response filed Oct. 7, 2014, the company says the loan came about as part of a JV it formed with Noble Group some point before February, 2012. As part of the deal, Noble agreed to arrange interim financing for Salmon River of $2-million. Salmon River would then use the money to acquire an iron-ore project in Australia. The interim financing was to be repaid through a public offering that would occur as part of the JV agreement.

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