TORONTO, March 4 /CNW/ - Coalcorp Mining Inc. ("Coalcorp" or the "Company") (TSX-CCJ) announces that AES Gener S.A. ("AES") has commenced a proceeding at the Supreme Court of the State of New York, which has been removed to United States District Court for the Southern District of New York (the "AES Proceeding") seeking a temporary restraining order and preliminary injunction requiring Coalcorp's subsidiary, Compania Carbones del Cesar ("CDC") to retain a minimum of USD$30,747,000 from the proceeds of the previously announced proposed sale by CDC of the La Francia mine and related infrastructure assets to a subsidiary of The Goldman Sachs Group, Inc. (the "Proposed Transaction") upon the successful completion of the Proposed Transaction.
The AES Proceeding relates to a previously disclosed dispute between CDC and AES involving a coal sale contract dated as of August 30, 2004 (the "AES Contract"). In March, 2006, CDC ceased further shipments to AES under the AES Contract. This resulted in a dispute between CDC and AES which has been ongoing since that time, and from which period to date, various attempts were made to resolve the dispute between the parties amicably.
Coalcorp intends to vigorously oppose the AES Proceeding. A hearing is scheduled for 10:30 a.m. on March 4, 2010 at the United States District Court for the Southern District of New York.
Coalcorp is currently 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 Carbones Colombianos del Cerrejon which owns the La Caypa coal mine in Colombia. Further information can be obtained by visiting our website at www.coalcorp.ca or under the Company's profile at www.sedar.com.
Forward Looking Statements Disclaimer
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.
SOURCE Coalcorp Mining Inc.
For further information: For further information: Carlos Gomez, Interim Chief Executive Officer, +57-1-658-5050 Ext: 9990