TUCSON, Ariz., Dec. 27, 2006 (PRIME NEWSWIRE) -- Mr. Ronald A. Hirsch, Chairman of the Board of Directors of Nord Resources Corporation ("Nord") (Pink Sheets:NRDS) announced today that Nord had received $475,000 as settlement proceeds in Nord's claim In re ASARCO, LLC as debtor in bankruptcy, and a further $195,000 from Oconee in connection with an earlier dispute involving electric power credits.
Nord also announced that American Stock Transfer & Trust Company ("AST") confirmed receipt of the final $250,000 deposit from Platinum USA into the Deposit Fund established under the Agreement and Plan of Merger dated October 23, 2006 by and among Platinum Diversified Mining, Inc. ("Platinum"), Platinum Diversified Mining USA, Inc. ("Platinum USA"), PDM Merger Corp. and Nord (the "Merger Agreement"). The Deposit Fund, which now totals $1 million, will be applied by AST to the merger consideration funds to be deposited by Platinum and Platinum USA for the purposes of paying the merger consideration, in the event of the consummation of the merger.
Commenting on the recent corporate developments, Mr. Hirsch said: "We are pleased that we have been able to put the ASARCO and Oconee claims behind us and in the process have improved our working capital position. We are also pleased that PDM has made the final $250,000 payment into the Deposit Fund, which we see as a positive sign that PDM wants to see the merger transaction close, notwithstanding the recently announced events concerning the Merger Agreement."
On December 26, 2006, Nord announced that the merger did not close on the scheduled closing date, and that it had been advised by Platinum that Platinum anticipates to be in a position to close once formal project financing documentation is in place.
The foregoing description of the Merger and the Merger Agreement is not complete and is qualified in its entirety by reference to the Merger Agreement. Nord has filed a copy of the Merger Agreement as an exhibit to the Current Report on Form 8-K filed by Nord with the SEC on October 23, 2006.
Forward-Looking Statement Disclaimer
This release contains forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements in this release are based on current estimates and actual results may differ materially due to risks associated with the fact that the consummation of the merger transaction is subject to numerous closing conditions, including, among others, (i) the absence of a material adverse effect in Nord's business or operations, as described in the merger agreement; (ii) the risk that the transaction may not be consummated if the conditions to closing are not satisfied or waived; (iii) the risk that Platinum has certain termination rights in the definitive merger agreement including as a result of a material adverse effect in Nord's business or operations; (iv) other risks set forth in Nord's most recent Form 10-KSB, Form 10-QSB and other SEC filings which are available through EDGAR at www.sec.gov. These are among the primary risks we foresee at the present time. Nord assumes no obligation to update the forward-looking statements.