TORONTO, Feb. 17 /CNW/ - Coalcorp Mining Inc. ("Coalcorp" or the "Company") (TSX-CCJ) is providing its tenth 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 December 16, 2009, Coalcorp announced that it filed its Annual Financials, however remained delayed in the filing of its 2009 Annual Information Form. The Company announced on February 5, 2010 that it had filed its first quarter interim financial statements, CEO and CFO certifications and related management discussion and analysis (MD&A) for the three month period ended September 30, 2009 (the Q1 Financials"), but remained delayed in filing its second quarter interim financial statements, CEO and CFO certifications and related MD&A for the six month period ended December 31, 2009 (the "Q2 Financials") beyond the filing deadline of February 15, 2010.
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 with respect to the delayed filing of the Annual Financials and 2009 Annual Information Form. The management cease trade order will remain in effect for so long as the 2009 Annual Information Form and Q2 Financials 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 ninth default status report issued by the Company on February 3, 2010.
Filing of Q1 Financials
On February 5, 2010, Coalcorp announced that it had filed its Q1 Financials. A copy of the Q1 Financials is available on the SEDAR website at www.sedar.com and the Company's website at www.coalcorp.ca.
Receipt of First Payment Under Settlement Agreement
On February 8, 2010, Coalcorp announced that the parties to the Settlement Agreement (as defined below) had delivered such releases, consents and agreements, and Xira Investment Inc. ("Xira") had made the initial $7 million payment to Coalcorp, each as required under the Settlement Agreement.
Coalcorp announced on February 1, 2010 that Coalcorp, Xira and former Coalcorp management and other parties to various claims amongst them had entered into a settlement agreement to settle all matters in dispute (the "Settlement Agreement"). As announced on that date, in addition to the payments and deliveries made on that date, certain other payments and deliveries are required to be made on future dates in accordance with the terms of the Settlement Agreement.
Shareholder Approval of Proposed Transaction
On February 11, 2010, the Company announced that the proposed sale by Coalcorp's subsidiaries of the La Francia mine and related infrastructure assets, including Concession 5160, and all of the issued and outstanding shares of Adromi Capital Corp., the holder of the La Francia II concession, to a subsidiary of The Goldman Sachs Group, Inc. (the "Proposed Transaction"), received approval by the requisite majority of Coalcorp shareholders at a duly constituted special meeting of shareholders held in on February 11, 2010. The Proposed Transaction remains subject to receipt of certain Colombian governmental approvals and third party consents and upon their receipt, is expected to close near the end of February, 2010.
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 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.
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: Juan Carlos Gomez, Interim Chief Executive Officer, +57 - 1 - 658 - 5050 Ext: 9990