TORONTO, Jan. 22, 2013 /CNW/ - Cline Mining Corporation ("Cline" or the "Company") (TSX:CMK) announces that it has retained GMP Securities L.P. ("GMP") as its exclusive financial advisor. GMP's mandate includes assisting the Company in exploring and evaluating strategic alternatives to the recapitalization plan with Marret Asset Management Inc. ("Marret") previously described in the Company's press release dated December 27, 2012 (the "Marret Plan"). Under the terms of an agreement with Marret, on behalf of certain bondholders of the Company, the Marret Plan will be implemented unless, by February 28, 2013, Cline has received a non-binding letter of intent for a transaction that meets specified criteria and, among other things, such transaction closes by April 30, 2013. With the assistance of GMP, the Company is in the process of soliciting proposals for possible alternative transactions with a view to maximizing value for the Company and its stakeholders.
The Company also announced that the Toronto Stock Exchange (the "TSX") has granted the Company an exemption from the TSX's shareholder approval requirement, on the basis of financial hardship, with respect to the provisions of the Marret Plan that would otherwise be subject to shareholder approval under TSX requirements.
Cline has metallurgical coal property interests in British Columbia and in Colorado, U.S.A. with NI 43-101 independent Technical Reports. Cline is focused on the exploration and development of metallurgical steel making coals in Canada and the U.S., and on its iron ore property in Madagascar and its Cline Lake gold property in northern Ontario, Canada.
This press release contains forward-looking statements (including "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995) relating to, among other things, the operations of the Company, the environment in which it operates and the Company's future financial and operating performance. Generally, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Such statements are based on assumptions, estimates, forecasts and projections made in light of the trends, conditions and expected developments that are considered to be relevant and reasonable in the circumstances at the date that such statements are made. Forward-looking statements are not guarantees of future performance and such information is inherently subject to known and unknown risks, uncertainties and other factors that are difficult to predict and may be beyond the control of the Company. A number of factors and assumptions may cause actual results, level of activity, performance or outcomes of the Company to be materially different from those expressed or implied by such forward-looking statements including, without limitation, the Company's ability to enter into a letter of intent by February 28, 2013 with respect to an alternative transaction to the Marret Plan and complete such transaction before April 13, 2013, the future price of coal, industry market trends and predictions, the estimation of mineral reserves and resources, capital, operating and exploration expenditures, costs and timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and regulatory matters and other risks set forth in other public filings of the Company. Consequently, undue reliance should not be placed on such forward-looking statements. In addition, all forward-looking statements in this press release are given as of the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws.
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SOURCE: Cline Mining Corporation
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Ken Bates, President and CEO
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