Coalcorp Provides Updated Default Status Report



    TORONTO, April 1 /CNW/ - Coalcorp Mining Inc. ("Coalcorp" or the
"Company") (TSX-CCJ) is providing its third Default Status Report in
accordance with National Policy 12-203: Cease Trade Orders for Continuous
Disclosure Defaults ("NP 12-203"). On February 6, 2009 Coalcorp announced that
it would delay the filing of its second quarter interim financial statements,
CEO and CFO certifications and related management discussion and analysis
(MD&A) for the three and six-month periods ended December 31, 2008 beyond the
filing deadline of February 16, 2009.
    On February 18, 2009 the Ontario Securities Commission (the "OSC") issued
a temporary management cease trade order related to the Company's securities
against the Chief Executive Officer and the then Chief Financial Officer
(Liliana Aleman has since stepped down from that role as announced on March
30, 2009) of the Company for so long as the interim financial statements,
certifications and related MD&A are not filed. The issuance of such management
cease trade order does not affect the ability of persons who have not been
directors, officers or insiders of the Company to trade in their securities.
However, the OSC, in its discretion, may determine at a later time that it
would be appropriate to issue a general issuer cease trade order affecting all
of the Company's securities.
    On March 30, 2009 the Company announced the below matters which are
material changes to the information contained in the second default status
report issued by the Corporation on March 17, 2009.

    Glencore Arbitration

    On January 26, 2009 Coalcorp announced the commencement of arbitration
proceedings by Coalcorp against Glencore International AG ("Glencore"), with
the London Court of International Arbitration (the "Arbitration") seeking a
declaration that a coal sales agreement entered into between Glencore and
Coalcorp's sales agent GC Coal in February, 2007 (the "February, 2007
Agreement") was not valid or binding on Coalcorp. Coalcorp has since received
notice from Glencore dated as of March 19, 2009 (the "Notice"), that it is
terminating the February, 2007 Agreement effective as of the date of the
Notice and pursuing a counterclaim seeking unspecified damages against
Coalcorp under the Arbitration. In addition, the Notice also provides that
Glencore is terminating, effective March 19, 2009, its coal sales agreement
with Carbones del Cesar S.A., a wholly-owned subsidiary of Coalcorp, entered
into on August 18, 2008. It is the Company's position that the terminations by
Glencore are unlawful and the Company reserves any and all of its rights and
remedies under the contracts. Based on Coalcorp's projected 2009 production,
the expected realized price under these contracts was USD$50.25 per tonne. As
Coalcorp is now discharged from its obligations under the terminated contracts
with Glencore, Coalcorp is currently in discussions with other customers for
coal sales on a spot basis.

    Statements of Claims from Terminated Employees

    Further to the Company's announcement on March 5, 2009 relating to an
internal review and investigation being conducted by the Company, and the
terminations for cause of five employees resulting from that review, the
Company has received statements of claims issued in Ontario from each of those
individuals claiming, among other things wrongful dismissal and seeking
damages. The former employees are, Jose Francisco Arata, Efrain Carrera,
Yaneth Mantilla, Vincente Mendoza and Juan Manual Pelaez, and the aggregate of
damages being claimed are approximately $2.4 million and special damages. It
is the Company's position that these claims are without merit and it intends
to vigorously defend itself against these actions. Further, the Company
continues to reserve its rights to pursue any additional actions and remedies
against these individuals.

    Appointment of New Director

    Coalcorp is pleased to announce the appointment of Charles H. Entrekin,
Ph.D. to its board of directors effective as of March 27, 2009. Dr. Entrekin
has over 30 years of experience in the mining and metals sector and possesses
significant public company experience at the executive officer level. He has
recently served as President and Chief Operating Officer of Titanium Metals
Corporation, a $1.3 billion NYSE listed producer of primary titanium and its
alloys as well as President and Chief Executive Officer of Timminco Ltd., a
$250 million TSX listed magnesium, silicon and aluminum company. Through his
career Dr. Entrekin has led and implemented many successful restructurings and
turnarounds of mining and metals companies in both North America and
internationally. Dr. Entrekin holds an MBA from the University of Delaware as
well as an M.Sc. and Ph.D from Drexel University. Dr. Entrekin's appointment
to the Company's board remains subject to final regulatory approval.

    Transition of CFO

    As part of Coalcorp's previously announced restructuring plan, Liliana
Aleman, the Company's Chief Financial Officer will be stepping down from that
position effective as of April 1, 2009 and assuming the new position of Senior
Vice President, Finance and Administration. In her new position, Ms. Aleman
will lead the Company's key initiatives that are currently underway as part of
the company's restructuring plan including, the implementation of stronger
internal accounting controls as well as risk management policies and
procedures. Ms. Aleman will also be responsible for budgeting and planning
matters, government relations and management of Coalcorp's interest in the
Fenoco railroad.
    The Company has retained Neil Kaplan on a temporary consultancy basis to
assume the responsibilities of Chief Financial Officer, while it conducts a
search for a new permanent Chief Financial Officer. Mr. Kaplan is a qualified
Chartered Accountant in both South Africa and Australia and was the former
Vice President, Finance of Prodeco in Colombia between 1997 to 2002.
    The Company confirms that, except as described herein and in its initial
default announcement and first default status report dated March 3, 2009 and
second default status report dated March 17, 2009: (i) there has been no
material change to the information set out in its initial default announcement
filed pursuant to NP 12-203; (ii) there has been no failure by the Company in
fulfilling its stated intention with respect to satisfying the provisions of
the alternative information guidelines set out in NP 12-203; (iii) there is no
actual or anticipated specified default subsequent to that disclosed in the
initial default announcement; and (iv) there is no other additional material
information concerning the affairs of the Company that has not been generally
disclosed.
    Due to the above mentioned stepping down of the Chief Financial Officer
of the Company and the transitions occurring related to this role, it is
anticipated that the Company will not be able to file its interim results by
April 16, 2009 as indicated in the initial default announcement. The Company
aims to file its interim results on or about April 30, 2009, however it will
provide a more certain update on the status of its interim results and the
timing of filing as soon as practicably possible.
    The Company will continue to provide bi-weekly updates, as required by NP
12-203, until the required filings have been made and the Company is no longer
in default.

    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. Further
information can be obtained by visiting our website at www.coalcorp.ca or
under the Company's profile at www.sedar.com.





For further information:

For further information: Joseph Belan, Interim Chief Executive Officer,
+57 - 1 - 658 - 5050, Ext: 9990

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Coalcorp Mining Inc.

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