TORONTO, Aug. 12 /CNW/ - Coalcorp Mining Inc. ("Coalcorp" or the
"Company") (TSX-CCJ) announced today that it executed an agreement with
Consorcio Minero del Cesar, its current mining contractor, which will allow
for the immediate commencement of operations at the La Francia mine.
The agreement also includes certain key amendments to the current
agreement that governs the relationship between the Company and the mining
1. The Company is granted the option for an early termination of the
mining contract upon completion of a buyout mechanism. This option
may be exercised by providing notice to the contractor at any time
after April 1, 2010, and will be effective three months following
2. The Company will have the option to assume the lease agreements in
respect of, or to acquire, contractor equipment that is essential for
the operation of the mine, upon termination of the mining contract.
3. The Company and the mining contractor have mutually waived and
settled any actual, threatened or future claims in connection with
the mining contract resulting from events occurring prior to the date
4. A management committee with senior representatives from the Company
and the mining contractor has been established and is designed to
improve communication between the Company and the mining contractor.
The Memorandum of Understanding (MOU) previously signed between the
Company and the mining contractor to regulate the incorporation of key
equipment into the operation of the La Francia mine has been superseded by
this new agreement and the mining contractor has agreed to maintain equipment
in the mine. The Company's obligation to assume the leases or acquire the
equipment under the terms of the MOU has thus ceased.
Coalcorp is a coal mining, exploration and development company with
interests in the La Francia coal mine and related infrastructure projects and
a number of coal exploration properties, all located in Colombia. Coalcorp
also holds a 60% equity interest in CCC which owns the La Caypa coal mine in
Colombia. Further information can be obtained by visiting our
websitewww.coalcorp.ca at www.coalcorp.ca or under the Company's profile at
Statements made in this news release may be forward-looking and therefore
subject to various risks and uncertainties. Certain material factors or
assumptions are applied in making forward-looking statements and actual
results may differ materially from those expressed or implied in such
statements. Coalcorp does not undertake to update any forward-looking
statements; such statements speak only as of the date made.
For further information:
For further information: Joseph Belan, Interim Chief Executive Officer,
+57-1-658-5050 Ext: 9990