TORONTO, Jan. 28 /CNW/ - Coalcorp Mining Inc. ("Coalcorp" or the "Company") (TSX-CCJ) announces that two leading independent proxy advisory services have recommended that Coalcorp shareholders vote to approve the Company's Proposed Transaction (as described below) at the Special Meeting scheduled for February 11, 2010.
Both the Institutional Shareholder Services Inc. unit of RiskMetrics Group and Glass Lewis & Co. have issued reports recommending shareholder support for the Proposed Transaction. The two firms conduct detailed analysis of corporate proposals and major investors rely on their recommendations in making their decisions about corporate governance and transactions.
As announced on January 7, 2010, certain subsidiaries of Coalcorp have entered into agreements to sell 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 (the "Proposed Transaction").
In its report, RiskMetrics Group noted that the Coalcorp "board undertook a comprehensive review of alternatives. No competing offers have emerged. In the circumstances, support is warranted."
Glass Lewis & Co. also supports the proposed transaction. It notes that the new management team, a committee of independent directors, and the board conducted a lengthy and rigorous review of strategic alternatives. It states: "We believe that the proposal is in the long-term interest of the Company. The board believes that in the event the Proposed Transaction is not completed, and in light of the Company's current financial condition, it is likely that it will have to seek creditor protection or commence insolvency proceedings. Such an outcome could result in the Company conducting a sale of assets which results in a lower amount of cash than the proposed transaction. Accordingly, we recommend that shareholders vote FOR this proposal."
"We believe it is important that all shareholders be informed that, after an independent and comprehensive review, RiskMetrics and Glass Lewis have both recommended that Coalcorp shareholders vote "FOR" the proposed transaction," said Juan Carlos Gomez, Interim Chief Executive Officer of Coalcorp.
"These recommendations clearly support Coalcorp's position that the proposed transaction offers superior value to shareholders", said Richard Lister, Chairman. "The potential alternative of insolvency proceedings would likely result in a fire-sale of Coalcorp's assets and provide significantly less value to shareholders."
Coalcorp urges shareholders to vote "FOR" the Proposed Transaction today by voting on the internet, telephone or signing, dating and returning their proxies. The deadline for receiving proxies is February 9, 2010 at 10:00 a.m. (Toronto Time).
Shareholders who have questions about the Proposed Transaction or need assistance in submitting their proxy or voting their shares should contact Laurel Hill Advisory toll-free at 1-800-503-9439 Banks and brokers can call (416) 637-4661.
NOTE: Permission to quote from the RiskMetrics Group and Glass Lewis & Co. reports was neither sought nor obtained
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.
Forward Looking Statements Disclaimer
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; Shareholder Information, Laurel Hill, Advisory Group, 1-800-503-9439