TORONTO, March 17 /CNW/ - Coalcorp Mining Inc. ("Coalcorp" or the "Company") (TSX-CCJ) is providing its twelfth 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. On February 5, 2010, the Company announced that it would be delayed in filing its second quarter interim financial statements, CEO and CFO certifications and related management discussion and analysis 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 eleventh default status report issued by the Company on March 4, 2010.
On March 4, 2010, the Company announced that AES Gener S.A. ("AES") commenced a proceeding at the Supreme Court of the State of New York, which was removed to United States District Court for the Southern District of New York (the "Court") seeking a temporary restraining order and preliminary injunction requiring Coalcorp's subsidiary, Compania Carbones del Cesar ("CDC") to retain a minimum of USD$30,747,000 from the proceeds of the previously announced proposed sale by CDC of the La Francia mine and related infrastructure assets to a subsidiary of The Goldman Sachs Group, Inc. (the "Proposed Transaction") upon the successful completion of the Proposed Transaction (the "AES Proceeding"). On that date, the Company also announced that the Court issued a temporary standstill order with respect to the Proposed Transaction to consider arguments to be made at a hearing scheduled for March 9, 2010 with respect to the AES Proceeding. At the March 9th hearing, the Court deferred making a final ruling with respect to the AES Proceeding and ordered that the parties reappear before the Court on March 15, 2010. On March 15, 2010, the Company entered into a mediation order with AES which provided that the AES Proceeding be discontinued with prejudice. The mediation order further provided that (i) Coalcorp, on behalf of CDC, will pay AES US$5.5 million upon the earlier of the closing of the Proposed Transaction or, within 45 days of the mediation order and all parties will exchange releases, and (ii) AES will discontinue its arbitration against CDC with prejudice and will relieve CDC from any obligations under the coal supply agreement in dispute with AES. As a result of the foregoing, Coalcorp also announced on that date that it would proceed with the completion of the Proposed Transaction which it intends to close on March 19, 2010.
On March 15, 2010, the Company announced that it received US$17 million in payment from Xira Investment Inc. ("Xira") in accordance with the settlement agreement entered into by Coalcorp, Xira and others on January 31, 2010 as previously announced. The shares in Carbones Colombianos del Cerrejon S.A. (the owner of the Caypa mine) will be held in escrow and not transferred to Xira pending any required approval and until final payment by Xira to Coalcorp pursuant to the settlement agreement on January 31, 2011.
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