Cardero investor demands $5.67 million payment for $5.5 million notes

Investor Luxor Capital Group alleges company defaulted on 10% notes

By Devika Patel

Knoxville, Tenn., Aug. 2 - Cardero Resource Corp. reported in a 6-K filing that it has received a demand for payment in regards to its $5.5 million of 10% senior secured notes. The notes were sold to affiliates of Luxor Capital Group, LP on April 23.

The investor is demanding $5.67 million by Aug. 5. Luxor alleges that the company failed to pay $48,137 of legal costs associated with the notes, causing a default.

Cardero said it disputes that it was provided with proper notice to pay the legal fees and states that there has therefore been no default, and the demand for payment is invalid. It reported in the 6-K that it has paid the legal fees and will resist any attempts by the investor to enforce payment based on the alleged default.

The company also said it is in advanced negotiations to secure financing to pay the debt and expects to complete the financing by Aug. 5.

Based in Vancouver, B.C., Cardero is a base and precious metal exploration company.

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