TORONTO, Jan. 28 /CNW/ - Coalcorp Mining Inc. ("Coalcorp" or the "Company") (TSX-CCJ) announces that it has been served by counsel for Blue Pacific Assets Corp. ("Blue Pacific") with a statement of claim (the "Statement of Claim") and a notice of motion (the "Notice of Motion") seeking an injunction to stop the sale of the La Francia mine and related infrastructure assets 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 (the "Proposed Transaction").
Blue Pacific is a corporation which the Company alleges is controlled by certain former directors and officers of Coalcorp that are defendants in the Coalcorp Statement of Claim (as defined below) and with whom the Company has a letter agreement dated September 27, 2005, as amended (the "Royalty Agreement") over the gross production of coal derived from that portion of the La Francia mine in the area consisting of Concession for Medium Mining Agreement No. 05160. The Royalty Agreement was executed while the Company was under the control of such former directors and officers.
As previously announced on September 29, 2010, Coalcorp commenced a legal action (the "Coalcorp Statement of Claim") against certain former directors and officers and other parties. The Coalcorp Statement of Claim alleges, among other things, that the defendants participated or allowed Coalcorp to participate in improper transactions that were harmful to Coalcorp and its shareholders. Blue Pacific is one of the defendants in this action. The validity of the Royalty Agreement and the circumstances in which it was entered into is one of the claims at issue in the Coalcorp Statement of Claim.
Coalcorp disputes the validity of the Royalty Agreement and takes the position that it is not an enforceable agreement. Coalcorp believes that the Blue Pacific Statement of Claim is without merit and is an additional attempt by Blue Pacific and Coalcorp's former directors and officers to prevent Coalcorp from pursuing the Coalcorp Statement of Claim.
Coalcorp continues to believe that the Proposed Transaction is in the best interest of the Company and its stakeholders. Coalcorp is confident in its position and will vigorously defend the Statement of Claim and Notice of Motion. Coalcorp does not intend to comment further on these matters unless a material development occurs which requires disclosure.
If shareholders of Coalcorp have any questions or require further information regarding the voting of shares with respect to the Proposed Transaction, please contact Laurel Hill Advisory Group toll free via telephone at: 1-800-503-9439 or by email at: firstname.lastname@example.org
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.
Forward Looking Statements Disclaimer
Statements made in this news release may be forward-looking and therefore subject to various risks and uncertainties, including, without limitation, statements concerning the merits and possible outcome of pending litigation. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Coalcorp's expectations include the risk and uncertainties involved in the litigation process, such as the possible discovery of new evidence or acceptance of unanticipated or novel legal theories, changes in interpretations of the law due to decisions in other cases, the inherent difficulty in predicting the decisions of judges and juries and the possibility of appeals, and other risk and uncertainties. Coalcorp cannot determine the outcome of the litigation described in this news release or the impact such litigation will have on the Proposed Transaction.
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