Nord misses payment

Denver — New Mexico-based Nord Pacific (NPF-T) has failed to make a required payment for the Tritton copper project in New South Wales, Australia, prompting its partner, Australian-listed Straits Resources, to seek redress.

A year ago, Nord Pac sought to buy the remaining half of the Tritton project it did not already own. The agreement called for the junior to pay A$9 million (US$4.7 million) to Straits, the vendor. It paid A$3 million upon signing and agreed to make four semi-annual payments of A$750,000, followed by six payments of A$500,000 once production begins.

However, the company, which recently underwent a change in management and is strapped for cash, decided not to make the US$750,000 payment due June 1. Straits has since filed a default notice and requested remedies available under the contract.

Nord Pac’s financial situation appears to be worsening. The company recently announced it will be unable to pay a bill to KPMG to complete its year-end financial statements. KPMG is an independent consulting and accounting firm based in Amsterdam.

Nord Pac already missed the first deadline for filing financial statements; if it misses the next, on July 22, the Ontario Securities Commission could impose a cease-trade order.

The Tritton deposit is a lens of copper mineralization 12 miles south of the Girilambone copper mine. Straits operates Girilambone, which is nearing the end of its life, through a 60-40 joint venture with Nord Pacific. Straits retains the right to acquire Nord Pac’s 40% stake through the Tritton transaction.

Nord Pac had hoped to develop Tritton as an underground operation, with copper production pegged at 40 million lbs. each year, for seven years. A year ago, reserves stood at 5.1 million tons grading 3.14% copper, within a resource of 10.2 million tons of 2.6% copper. In addition, the company has a 100% interest in the Tabar Islands gold project in Papua New Guinea.

Nord Pacific is 28.5%-owned by Nord Resources (NRDS-O), which is under bankruptcy protection.