Mutiara Resources, the largest single shareholder of Iriana Resources (IR-T), has demanded that Iriana repay a $2.5-million debt to Mutiara within 10 days.
The debt stems from an April 1999 loan agreement between the two. The original deal had a six-month term, but has been extended over time. As security for the loan, Iriana put up all of its assets, plus a 2.5% stake in each of Jeraldo Investments and Supreme Resources, its wholly owned subsidiaries, for every US$300,000 of loan funds advanced.
In February, Iriana inked a deal to extend the loan agreement until March 31. Last week, Mutiara told Iriana that it would not extend the loan past that date.
In a news release, Iriana said Mutiara has reserved its right to apply for appointment of an interim receiver in the event of non-payment of the outstanding amount and to proceed without further notice after expiration of the 10-day period to enforce its rights.
Iriana also said that it expects to take a substantial writedown on the value of certain property interests following a board meeting scheduled for April 17.
Mutiana has a 34.3% stake in Iriana.
In December, Iriana signed a deal with Majescor Resources (MAJ-V) to earn a half-interest in four separate properties covering 250 sq. km in the Otish Mountains area of north-central Quebec. The properties combine to form the Portage Extension project. To earn its stake, Iriana must spend $750,000 over three years. The property package is near the main Majescor-BHP block.
Iriana also holds about 2,700 sq. km in the centre of the Manitoba diamond play where it is partnered with Troymin Resources (TYR-V) and ManQuest Resources. The properties contain about fifty kimberlite targets.
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