not correct

Territory defends hidden loans

Territory Resources Ltd says $24.5 million in loans paid to Monarch Gold were "not material," and this is why they were not disclosed to the market at the time.

The Sydney Morning Herald reported that the claim could come under scrutiny from the corporate regulator.

Responding to an ASX query, Territory said "the total loan amount was monitored by Territory Resources on a continuous basis and at no time until 25 June 2008 [when the miner had its securities placed in a trading halt] was the board aware that any matters of a material nature had arisen to the loans."

The ASX asked the miner about $19 million in loans made out to unnamed entities in its march quarterly report.

Territory said it made $15 million in loans to Monarch in six separate tranches over six months.

The paper reported that when Territory made the loans Michael Kiernan was a director at both companies, along with David Humann.

One of Monarch's administrators, Pritcher Partners said it was looking into the directors' duties and relationship between the two miners as part of its investigation into Monarch's collapse.


there much was not correct!!