TORONTO, Feb. 1 /CNW/ - Coalcorp Mining Inc. ("Coalcorp"), Xira Investment Inc. ("Xira") and Former Coalcorp Management and other parties to various claims amongst them announced today that they have entered into a settlement agreement to settle all matters in dispute. The settlement agreement requires the parties to deliver certain releases, consents and agreements by February 8, 2010.
As part of the settlement agreement, the parties have agreed to the following:
- Xira has agreed to pay $34 million payable as follows: (i) $7 million
on February 8, 2010, (ii) $17 million on March 15, 2010, (iii)
$8 million on September 15, 2010 and (iv) $2 million on January 31,
- On March 15th, upon payment of the $17 million, Coalcorp's
subsidiaries will consent to the completion of the previously
announced transaction with Xira regarding Carbones Colombianos del
Cerrejon S.A. (the owner of the Caypa mine).
- Coalcorp's subsidiary has agreed to waive its sales commission on
production from the Caypa mine and cancel any payments currently
- Blue Pacific Assets Corp. has agreed to terminate its royalty on
production from the La Francia mine and cancel any royalty payments
- All litigation and regulatory proceedings among the parties will be
- All parties will be releasing each other as part of the settlement.
Releases in favour of Xira and the Former Management Group will be
held in escrow until final payment by Xira.
Pending delivery of the agreements, releases and payment on February 8,
2010, the parties have agreed to bring to a standstill outstanding litigation,
arbitrations and proceedings involving the parties and the Former Management
Group has agreed to discontinue its opposition to Coalcorp's proposed
transaction involving the sale of the La Francia I mine and La Francia II
concession and vote the shares they own or control and any proxies in favour
of the proposed transaction.
Forward Looking Statements Disclaimer
Statements made in this news release may be forward-looking and therefore subject to various risks and uncertainties, including, without limitation, statements concerning the possible outcome of the settlement proceedings. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.
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: Juan Carlos Gomez, Interim Chief Executive Officer, +57-1-658-5050 Ext: 9990