TORONTO, July 15, 2013 /CNW/ - Marret Asset Management Inc. ("Marret")
announced that, on behalf of various client accounts under management,
it has successfully completed the acquisition (the "Acquisition") of
$9,490,998 principal amount of 10% senior secured convertible bonds
(the "Convertible Bonds") of Cline Mining Corporation ("Cline" or the
"Company"). The transaction closed on July 8, 2013 (refer to Cline's
News Release of that date). Approximately $3.2 million of the
Convertible Bonds were issued as payment for the June 17, 2013 interest
payment owing to Marret client accounts and approximately $3.19 million
of the Convertible Bonds were issued as payment for certain fees owing
to certain Marret client accounts. The balance of the Convertible Bonds
were issued for cash equal to their principal amount. The Convertible
Bonds were acquired pursuant to the accredited investor exemption of
applicable prospectus requirements.
Prior to the Acquisition, Marret client accounts did not own or control
any Convertible Bonds or common shares of Cline. After giving effect to
the Acquisition, Marret client accounts will beneficially own and
control, directly and indirectly, the Convertible Bonds which are
convertible into 1,898,199,600 common shares of the Company (the
"Shares") based on an exercise price of $.005 per Share of the Company,
representing 90.08% of the Company's issued and outstanding Shares on a
Marret acquired the Convertible Bonds for investment purposes on behalf
of various client accounts and may, depending on market and other
conditions, increase or decrease the client accounts' beneficial
ownership, control or direction over the Shares, through market
transactions, private agreements, or otherwise.
The material terms governing the issuance of the Convertible Bonds are
set forth in the trust indenture for the Convertible Bonds and the
first supplement providing for the issuance of the Convertible Bonds,
both of which are available on the Company's reference page on SEDAR (www.sedar.com).
Cline is a Canadian mining company focused on the maintenance and
development of its 100% owned New Elk coking coal mine located in
Colorado, U.S.A. The Company also has interests in metallurgical steel
making coals in Canada, an iron ore project in Madagascar, and the
Cline Lake gold property in northern Ontario, Canada. With a head
office in Toronto and site offices at the mine, Cline is led by a
management and operations team with over 100 years of exploration and
About Marret Asset Management Inc.
Marret Asset Management Inc. (200 King Street West, Suite 1902, Toronto,
ON) is an employee owned credit fixed income manager based in Toronto.
Marret's experienced team of investment professionals led by Barry
Allan specialize exclusively in fixed income and, particularly, in high
yield debt strategies.
SOURCE: Marret Asset Management Inc.
For further information:
A copy of the early warning report being filed by Marret may be obtained by contacting Marret Investor Services at 416-214-5800.