TORONTO, May 4 /CNW/ - Coalcorp Mining Inc. ("Coalcorp" or the "Company")
(TSX-CCJ) announced today that Andean Coal Corporation B.V.I. ("Andean"), a
subsidiary of Coalcorp, commenced an arbitration proceeding at the ICC
International Court of Arbitration against Xira Investment Inc. ("Xira") by
delivering to the International Chamber of Commerce Secretariat a Requisition
for Arbitration. The dispute relates to alleged breaches by Xira under a Sale
and Purchase Agreement dated June 27, 2008 ("SPA") which sets out the terms
upon which Xira purchased 40% of the issued share capital of Carbones
Colombianos del Cerrejon S.A. ("CCC") from Andean.
Among the breaches presented in the claim is that CCC management, under
the direction of Xira, entered into an extraordinary transaction with an
off-shore Panamanian entity. Andean believes this agreement was made without
any commercial rationale and without ascertaining the beneficial ownership of
Andean is asking an arbitration panel, among other things, to declare
that the SPA is null and void and, in the alternative, an Order requiring Xira
to pay damages to Andean for breach of the SPA.
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 CCC 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.
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.
For further information:
For further information: Joseph Belan, Interim Chief Executive Officer,
+57 - 1 - 658 - 5050 Ext: 9990