TORONTO, March 16 /CNW/ - Coalcorp Mining Inc. ("Coalcorp") (TSX-CCJ), announces that it has entered into a mediation order with AES Gener S.A. ("AES") which provides that the proceeding initiated by AES seeking a temporary restraining order and preliminary injunction requiring Coalcorp's subsidiary, Compania Carbones del Cesar ("CDC"), to retain a minimum of USD$30.7 million 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") is discontinued with prejudice. The mediation order further provides that the parties have agreed 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 intends to proceed with the completion of the Proposed Transaction which it intends to close on March 19, 2010. Coalcorp's outstanding offer to repurchase its outstanding 12% senior secured notes (the "Offer for Notes"), which expires on the business day immediately prior to the closing date of the Proposed Transaction, will now expire no earlier than 5:00 p.m. (Toronto time) on March 18, 2010. The Offer for Notes has been filed and is available on SEDAR at www.sedar.com.
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.
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