Gold miners accused of defaulting on a $25 million loan will get their day in a Montezuma County courtroom next year. A counterclaim has also been filed.
New York hedge fund Maximilian Investors initially filed civil action on April 12, 2013, against Red Arrow Gold and its partner American Patriot Gold after they defaulted on a $25 million loan. The investors claim they are still owed nearly $11 million.
Red Arrow Gold owner Craig Luikko of Mancos filed a breach of contract counterclaim on Sept. 15, 2014. Included in the 10-page rebuttal, Luikko's attorney Robert Korn argues, in part, that American Patriot Gold skimmed millions from the initial loan, and his client should not be individually liable to claims made by William Sanders, owner of property leased to and subsequently polluted by Red Arrow Gold.
At a hearing before District Court Judge Todd Plewe last week, multiple attorneys involved with the complex case rejected court-suggested trial dates in January and February of next year. Their concerns included having enough time to obtain depositions from witnesses.
"This is a 2013 case," Plewe said. "I'm trying to bring resolution to all parties."
An April 27, 2015, trial date was agreed on. The trial is expected to last seven days.