TORONTO, Nov. 25 /CNW/ - Coalcorp Mining Inc. ("Coalcorp" or the "Company") (TSX-CCJ) is providing its fifth Default Status Report in accordance with National Policy 12-203: Cease Trade Orders for Continuous Disclosure Defaults ("NP 12-203"). On September 16, 2009, the Company announced that it would be delayed in the filing of its annual financial statements and related MD&A for the financial year ended June 30, 2009 (the "Annual Financials") and 2009 Annual Information Form beyond their filing deadlines of September 28, 2009.
On October 19, 2009, the Ontario Securities Commission (the "OSC") issued a management cease trade order related to the Company's securities against the Chief Executive Officer of the Company for so long as the Annual Financials and 2009 Annual Information Form are not filed. The issuance of such management cease trade order does not affect the ability of persons to trade in their securities of Coalcorp, other than the Chief Executive Officer. However, the OSC, in its discretion, may determine at a later time that it would be appropriate to issue a general issuer cease trade order affecting all of the Company's securities.
The Company reports the below matters which are material changes to the information contained in the fourth default status report issued by the Company on November 11, 2009.
Since the Company's mining contractor resumed coal mining operations at La Francia mine on August 23, 2009, the Company has mined approximately 284,000 tonnes of coal and shipped approximately 345,000 tonnes of coal from that date to November 24, 2009.
On November 24, 2009, Coalcorp announced that its indirect wholly owned subsidiary Compania Carbones del Cesar ("Cesar") entered into a Deed of Settlement and Release with Glencore International A.G. ("Glencore") in connection with the current arbitrations in respect of the sale and purchase of coal agreements known as Contract 7927 and Contract 15109. Coalcorp, Cesar and Glencore agreed, to a full and final settlement of any and all claims and counterclaims in the arbitrations with respect to these two coal Contracts, without any admission of liability, on the terms set out in the Deed of Settlement of Release.
Coalcorp and Prodeco S.A. also resolved the disputes in connection with the Prodeco IV Contract that were previously press released by Coalcorp on October 27, 2009 and October 28, 2009. Coalcorp and Prodeco entered into a settlement agreement which provides that all differences existing amongst the parties in connection with the Prodeco IV Contract are fully settled without admissions of liability and that performance of the Prodeco IV contract shall continue on a FOT basis.
The Company confirms that, except as described herein and in its initial default announcement and its subsequent default status reports: (i) there has been no material change to the information set out in its initial default announcement filed pursuant to NP 12-203; (ii) there has been no failure by the Company in fulfilling its stated intention with respect to satisfying the provisions of the alternative information guidelines set out in NP 12-203; (iii) there is no actual or anticipated specified default subsequent to that disclosed in the initial default announcement; and (iv) there is no other additional material information concerning the affairs of the Company that has not been generally disclosed.
The Company will continue to provide bi-weekly updates, as required by NP 12-203, until the required filings have been made and the Company is no longer in default.
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 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.
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: Joseph Belan, Interim Chief Executive Officer, +57 - 1 - 658 - 5050 Ext: 9990