21.7% of a loaf............
posted on
Mar 16, 2010 03:23PM
http://www.palladonmining.com/s/Home.asp
======================================================================= Luxor Capital Partners, LP, Realizes On Debt And Takes Majority Ownership Interest In Palladon Iron Corp. ======================================================================= Salt Lake City, UT, March 16, 2010. Palladon Ventures Ltd. ("Palladon" or the "Company") (TSX-V: PLL.V) (Frankfurt: PV-1). Palladon announces today the full equitization of the Luxor Loans which amounted to US$40,557,000 including principal and interest. This negotiated equitization comes as a result of Luxor Capital Partners, LP ("Luxor") realizing on its security interest and provides for the full extinguishment of Palladon debt owed to Luxor. Given the inability of the Company to make payments of the foregoing amount when due, and in order to avoid enforcement or foreclosure which could have resulted in the transfer of ownership of all the Palladon Iron Corp. capital stock to Luxor, Luxor has agreed to accept a 78.3% interest, in full satisfaction of all amounts due under the loan agreements. Palladon Ventures, Ltd. will now own 21.7% of Palladon Iron Corporation. Palladon CEO Dale Gilbert stated: "As a result of the TSX-V ruling denying the Palladon - Luxor Letter Agreement of December 4, 2009, the company was immediately in default on the Luxor Loans and entered into a short term Standstill Agreement expiring March 15, 2010. Through last night the company was searching for viable financing alternatives to the executed equitization plan. Although disappointed at the company's inability to find an alternate source to pay off the Luxor Loans, Palladon can now move forward as a debt free enterprise working with Luxor to accomplish an off take agreement and advance the concentrate plant process." On Behalf of the Board of Directors, Dale S. Gilbert President and Chief Executive Officer About Palladon Palladon Ventures Ltd. is a junior resource company and remains focused on advancing the Iron Mountain Project, an iron ore mine located west of Cedar City, Utah. For Further Information Please Contact: Dale S. Gilbert President & CEO Palladon Ventures Ltd. 801.521.5252 Tel 801.521.5454 Fax Email: [email protected] Website: www.palladonventures.com