TORONTO, March 22 /CNW/ - Coalcorp Mining Inc. ("Coalcorp" or the "Company") (TSX-CCJ) is pleased to announce the closing of the previously announced 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 "Transaction"). Concurrently with the closing of the Transaction, the Company completed its repurchase of the aggregate principal amount of USD$$106,730,000 of its outstanding 12% senior secured notes (the "Senior Notes") under its previously announced offers for its Senior Notes which expired at 5:00 p.m. (EST) on March 18, 2010 (the "Offers for Notes").
The Transaction was approved by over 87% of the votes cast by Coalcorp's shareholders at a special meeting to consider the Transaction held on February 11, 2010. Full details of the Transaction and Coalcorp following the Transaction are described in the Management Information Circular mailed to shareholders on January 21, 2010 as well as in the press release issued by the Company on February 3, 2010, both of which have been filed on SEDAR at www.sedar.com.
The board of directors have met and are in the process of developing a new business model to benefit all of the remaining stakeholders of Coalcorp. This model revolves around using its residual cash and capitalizing on the board's and management's expertise, to invest in projects in the mining, metallurgical and mineral industries.
Coalcorp also announces that the Board has accepted the resignations of Juan Carlos Gomez, Interim Chief Operating Officer, and Joseph Belan, as director of the Company, effective immediately. The Company wishes to thank Mr. Gomez and Mr. Belan for their service to the Company and wish them well in their future endeavours.
Steven Cresswell has been appointed by the Board as the new Interim Chief Executive Officer of Coalcorp. Mr. Cresswell has over 20 years of financial experience working for both private and publicly held companies; primarily in the resource sector. Previously he held the position of CFO for Tiberon Minerals PTE, a Singaporean Company, developing a polymetallic mine in Northern Vietnam where he lived and worked for the last three years. Coupled with his Asian experience, Mr. Cresswell has a broad base of international experience having worked in North, South and Central America. He received his BAccS from the University of Calgary and also holds a CGA.
Coalcorp's Board currently consists of Richard Lister (Chairman), Gregory Radke, Charles Entrekin and Bruce Barraclough.
Coalcorp further announces that Coalcorp has relocated its head office from Bogota, Colombia to 120 Adelaide Street West, Suite 2500, Toronto, ON M5H 1T1 effective immediately.
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: Steven Cresswell, Interim Chief Executive Officer, (416) 644-1217