TORONTO, Dec. 3 /CNW/ - Coalcorp Mining Inc. (NEX-CCJ) ("Coalcorp") announces that it, along with certain of its subsidiaries including Compañia Carbones del Cesar S.A. ("CDC"), has received a second Notice of Claim from Colombian Natural Resources I SAS ("CNRI") with respect to alleged losses in the amount of US$1,110,000.
CNRI is claiming indemnification pursuant to certain agreements entered into in relation to the sale by Coalcorp and certain of it subsidiaries of the La Francia I Mine and related infrastructure assets and all of the issued and outstanding shares of Adromi Capital Corp., the holder of the La Francia II Mine, to a subsidiary of the Goldman Sachs Group, Inc. (the "Transaction"). The Transaction, as previously announced, was completed on March 19, 2010.
The claims for indemnification relate to alleged losses to CNRI resulting from the failure to obtain title to one-third of certain real property to be used for the development of a rail spur, supposedly due to CDC's failure to reimburse Carbones del Caribe for certain expenditures in connection with the purchase of such property, and legal expenses.
Pursuant to an escrow agreement dated March 19, 2010 among Computershare Trust Company of Canada ("Computershare"), Coalcorp, CNRI and Colombian Natural Resources II SAS (the "Escrow Agreement"), Computershare is holding US$8,000,000 in escrow in connection with the Transaction. Pursuant to this claim, CNRI has instructed Computershare to release US$1,110,000 to CNRI pursuant to the terms of the Escrow Agreement. CNRI has also demanded that Coalcorp pay the balance of CNRI's alleged losses. Coalcorp will direct Computershare not to release any monies pursuant to the terms of the Escrow Agreement as it intends to contest the claims.
Coalcorp denies the allegations in the Notice of Claim and intends to vigorously defend against the nature and amount of all such claims.
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Interim Chief Executive Officer