The Canadian Press, On Tuesday March 1, 2011, 8:54 pm EST
By The Canadian Press
VANCOUVER - Copper Canyon Resources Ltd. (TSXV:CPY) has launched a two-pronged counterattack against NovaGold Resources Inc. (TSX:NG), which has been trying to take over the Vancouver-based mining company.
CCR said Tuesday it has filed suit in B.C.'s Supreme Court, claiming it has right of first refusal to a strategic property currently controlled by NovaGold.
Copper Canyon is also asking the B.C. Securities Commission to block NovaGold's takeover bid, saying key information hasn't been properly disclosed.
The claims says Copper Canyon should have been given the first chance to buy NovaGold's 60 per cent stake in the strategically located Copper Canyon property.
Instead, the claim says, NovaGold improperly moved its majority share of the property to a partnership that's 50 per cent owned by Teck Resources Ltd. (TSX:TCK.B), which is NovaGold's partner in the Galore Creek gold play.
Copper Canyon, which owns the other 40 per cent of the property, has asked the court to ensure it gets the chance to buy NovaGold's share as required under their agreement.
It also wants the B.C. securities commission to block NovaGold's attempt to take over Copper Canyon in a hostile, all-stock bid that was worth about $34.1 million when it was announced in December.
NovaGold has since extended the deadline for its offer to March 8. It also publicly disputed Copper Canyon's assertion that the right of first refusal was triggered when NovaGold's stake was transferred to the Galore Creek partnership.
Copper Canyon shares closed Tuesday at 82 cents, up three cents, on the TSX Venture Exchange. NovaGold shares gained 70 cents on the Toronto Stock Exchange, prior to the announcement.