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by Mike Caswell
A case featuring two forgotten companies and a failed merger agreement from 2014 has landed in the Supreme Court of British Columbia. Santa Fe Gold Corp., a former Toronto Stock Exchange listing, has filed a court case against a defunct Vancouver company, Tyhee Gold Corp., over a loan agreement. Santa Fe is seeking to have an old $1.7-million (U.S.) debt extinguished.
The case is set out in a petition that Santa Fe filed at the Vancouver courthouse on Jan. 27, 2023. The matter goes back to February, 2014, when Santa Fe and Tyhee Gold were looking to merge. At the time, Santa Fe owned a mill in New Mexico, near Tyhee Gold's Summit mine. The idea was to combine the companies and put the mine into production, but the merger ultimately fell apart. As part of the agreement, Tyhee had to raise $20-million, a condition that it was unable to fulfill.
The court case centres around a bridge loan that was part of the merger. When the companies entered the merger agreement, Tyhee lent $1.7-million (U.S.) to Santa Fe. The loan would have been essentially erased had the merger gone ahead, but with the cancellation the amount became payable. Santa Fe acknowledged that it owed the money, but it was never able to repay anything more than a token amount.
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NWT government be interested in that 1.7 million, pretty sure some cleanup was needed up in yellowknife?