NORD RESOURCES CORPORATION SUBSIDIARY RECEIVES SUBSTANTIAL ARBITRATION AWARD
NORD RESOURCES CORPORATION
SUBSIDIARY RECEIVES SUBSTANTIAL ARBITRATION AWARD
DAYTON, Ohio, Nov. 18 /PRNewswire/ -- Nord Resources Corporation (NYSE: NRD) today announced that its wholly owned subsidiary, Sierra Rutile Limited (SRL), has won an arbitration award in an amount which Nord believes will exceed $30 million.
The award was rendered by an arbitration panel of the American Arbitration Association against Sierra Rutile Limited's former agent, Bomar Resources Inc., now known as Brinc Ltd. (Old Bomar), in an award filed on Nov. 15, 1991. The arbitration decision adjudged Old Bomar liable to SRL for breach of the exclusive agency agreement terminated by SRL in 1988 and awarded damages in the determined amount of approximately $3,700,000 and directed an accounting to SRL for various transactions found to have been improper which the company believes will result in an additional amount of approximately $9 million. The arbitration decision then trebles the entire award under the provisions of the Federal Racketeer Influenced and Corruption Organizations Act (RICO). It also awards SRL legal fees, expenses and interest. Old Bomar's counterclaims for post termination sales commissions, unjust enrichment and alleged interference by Sierra Rutile Limited with contracts of affreightment were denied in all respects. An application to confirm the award will be made to the United States District Court for the Southern District of New York following completion of the accounting.
In July 1991, the United States Court of Appeals for the Second Circuit ruled that a stay of SRL's District Court action against those parties who had refused to be bound by the arbitration, had been improvidently granted. The District Court has since vacated the stay. The action against those alleged to be responsible for Old Bomar's actions, and therefore also liable for payment of the arbitration award, is proceeding in the United States District Court for the Southern District of New York.
It is believed that Old Bomar does not have sufficient assets to satisfy the award and the company intends to pursue its remedies against all successors in interest and all others alledgedly responsible for the acts and conduct complained of.
Nord Resources Corporation is a major producer of rutile (a premium titanium dioxide mineral), kaolin and perlite and holds a significant interest in Nord Pacific Limited (NASDAQ: NORPF), a company engaged in the exploration for and development of precious, strategic and base metals.
/CONTACT: Dr. Edgar F. Cruft, chairman, president and CEO, 805-688-2989; or Terence H. Lang, senior vice president-finance, 513-433-6307, both of Nord Resources Corporation/
(NRD) CO: Nord Resources ST: Ohio IN: MNG SU: CG -- CL009 -- 1464 11/18/91 12:56 EST