TORONTO, Oct. 28 /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 September 16, 2009, the Company announced that it would be delayed in the filing of its annual financial statements and related MD&A for the financial year ended June 30, 2009 (the "Annual Financials") and 2009 Annual Information Form beyond their filing deadlines of September 28, 2009.
On October 19, 2009, the Ontario Securities Commission (the "OSC") issued a management cease trade order related to the Company's securities against the Chief Executive Officer of the Company for so long as the Annual Financials and 2009 Annual Information Form 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. 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.
The Company reports the below matters which are material changes to the information contained in the second default status report issued by the Company on October 14, 2009.
On October 27, 2009, Coalcorp announced that it delivered a notice of conflict to CI Prodeco S.A. ("Prodeco") pursuant to the coal supply agreement known as "Prodeco IV" whereby Coalcorp has an obligation to deliver 1,500,000 tonnes of coal to Prodeco. The dispute relates to Prodeco's refusal to accept Coalcorp's delivery of the coal by rail transportation at Prodeco's port notwithstanding the fact that (i) Coalcorp has obtained the necessary permits to transport coal using its trains, and (ii) the "Prodeco IV" agreement affords Coalcorp the right to access Prodeco's port to deliver coal once it is able to use rail transportation. In response, Prodeco has advised Coalcorp that it disputes its position and has asserted that Coalcorp has breached the Prodeco IV agreement and caused damage to Prodeco. In accordance with the terms of the Prodeco IV agreement, Coalcorp and Prodeco have 30 days to negotiate a settlement of this dispute before any further arbitration proceedings can be commenced. Due to this refusal to accept deliveries by rail, Coalcorp is currently delivering coal to Prodeco at Coalcorp's La Francia coal mine under the "Prodeco IV" agreement.
The Company confirms that, except as described herein and in its initial default announcement and its 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.
SOURCE Coalcorp Mining Inc.
For further information: For further information: Joseph Belan, Interim Chief Executive Officer, +57 - 1 - 658 - 5050 Ext: 9990