Coalcorp Provides Updated Default Status Report



    TORONTO, June 10 /CNW/ - Coalcorp Mining Inc. ("Coalcorp" or the
"Company") (TSX-CCJ) is providing its eighth 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 (the
"Second Quarter Interim Financials") beyond the filing deadline of February
16, 2009. On May 13, 2009 Coalcorp announced that it would also delay the
filing of its third quarter interim financial statements, CEO and CFO
certifications and related management discussion and analysis (MD&A) for the
nine month period ended March 31, 2009 beyond the filing deadline of May 15,
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 Second Quarter Interim Financials,
and related certifications and MD&A are not filed. The issuance of such
management cease trade order does not affect the ability of persons to trade
in their securities of Coalcorp, other than the Chief Executive Officer and
Liliana Aleman, the former Chief Financial Officer. 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.

    
    Update Matters
    --------------
    
    The Company reports the below matters which are material changes to the
information contained in the seventh default status report issued by the
Company on May 27, 2009.
    On April 30, 2009, the Company announced that since the closure of its
head office in Toronto on March 2, 2009, the Company made several attempts and
proposed various protocols by which it could gain complete access to its
electronic files, data and information secured on its Toronto electronic
server, which was then shared with three other companies. Pursuant to an Order
of the Ontario Superior Court of Justice dated June 5, 2009, a formal protocol
for the retrieval of the electronic information was set and will be
implemented under the supervision of the Court. The anticipated timing for
completion of the implementation of the protocol and recovery by Coalcorp of
its proprietary information is currently unknown.
    On April 8, 2009, the Company announced that its counsel received a
letter notifying the Company of a possible claim under the Libel and Slander
Act. On June 4, 2009, the Company was served with a claim under the Libel and
Slander Act. As previously announced, the allegation is that that the Company
made defamatory statements in certain of its prior press releases that
referred to the conduct of prior management of the Company. The claim is made
by terminated employees of the Company, including Jose Francisco Arata, Efrain
Carrera and Juan Manuel Pelaez, as well as former members of management of the
Company including Serafino Iacono and Miguel de la Campa. The claim seeks
among other things, general and aggravated damages in the amount of $10
million, punitive damages in the amount of $1 million and costs. It is the
Company's view that this claim is frivolous and vexatious and without merit
and it intends to vigorously defend itself against the claim and will be
responding in due course.
    On May 6, 2009, the Company announced that it declared force majeure
under its mining services contract with the Company's mine operator and
ordered the temporary suspension of its mining operations in the La Francia
coal mine. The reasons for the force majeure continue, and the Company is
taking all steps necessary to mitigate. Also as announced on that date, the
Company's mining contractor disputed the Company's declaration of force
majeure and refused to suspend operations. On May 28, 2009, the Company's
mining contractor suspended all operations, including crushing activities,
which has limited the ability of the Company to deliver crushed coal to
customers. On June 1, 2009, the mining contractor officially terminated its
memorandum of understanding with the Company and thus reverted to the original
mining services contract. As per the terms of the above-mentioned memorandum
of understanding, the mining contractor has requested that the Company assume
lease contracts for equipment secured in connection with the memorandum of
understanding.
    On June 1, 2009, the Company hired Mr. Juan Carlos Gomez as General
Counsel and Secretary of the Company and Mr. German de la Torre as Vice
President, Logistics. Mr. Gomez was previously employed as Legal Vice
President of Corporate Affairs of Refineria de Cartagena S.A. (currently owned
by the Colombian State-owned oil company). Previously he served as legal
counsel for the Americas for AerCap Group Services, Inc., a Dutch aircraft
financing, lessor and trading company and with the Colombian law firm Parra,
Rodriguez & Cavelier, where he advised coal producers and purchasers in
Colombia for over 10 years. Mr. de la Torre is a civil engineer and holds an
MBA degree and possesses over 19 years of experience in the areas of
transportation infrastructure construction and development in South America,
including over 4 years at Fenoco S.A. where he served as General Director of
Exploitation.
    The Company confirms that, except as described herein and in its initial
default announcement and subsequent default status reports: (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.
    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. 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.

    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

Organization Profile

Coalcorp Mining Inc.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890