Cline announces up to an aggregate of $6.9 million in debt and equity
financings and New Elk coal mine update
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The debt financing is comprised of a C$3.0 million loan (the "Loan") from Mitsui Matsushima International Pty. Limited ("Mitsui Matsushima") of
The equity financing is comprised of a brokered private placement, of up to C$3.9 million, to be completed through PowerOne Capital Markets Limited ("PowerOne"), as agent. The Company has entered into an agreement with PowerOne to raise up to C$3.9 million on a best-efforts basis, through the sale of up to 13,000,000 million units at a price of 30 cents per unit. Each unit will consist of one common share in the capital of the Company and one-half of one common share purchase warrant of the Company. Each whole common share purchase warrant will entitle the holder to purchase one common share of the Company at any time within 24 months after the closing date of the equity financing at an exercise price of 40 cents per share. The private placement is expected to close on or about
Cline Mining's New Elk coal mine in Colorado has a long and successful history of producing and delivering high quality metallurgical (coking) coal from its underground mine in southern Colorado to the steel making industry. Cline Mining acquired the mine in 2008. The mine has a large measured and indicated coal resource of 315,000,000 tons of in-place coal, which is detailed in its National Instrument 43-101 ("NI 43-101") compliant Technical Report of
On acquiring the New Elk mine, Cline began the process of mine reactivation. A Mine Exploration Plan was submitted to the US federal Mine Safety & Health Administration ("MSHA"). The mine water pumping system was installed and the mine dewatered. Two permanent mine ventilation fans were installed, the mine seals removed and the initial mine ventilation system established. The mine return air has been monitored in order to demonstrate to MSHA that the mine return air quality is acceptable. Sufficient surface infrastructure was reactivated to allow the mine rehabilitation program to proceed.
In
Following a thorough review, MSHA approved the initial Mine Exploration Plan in November, 2009. This allowed Cline to proceed with the initial exploration, which was completed on
The Cline New Elk coal mine being located in the
About Cline Mining
In addition to its Cline Lake Gold Mine Property, Cline has significant metallurgical coal property interests in British Columbia,
CLINE MINING CORPORATION Ken Bates, President and Chief Executive Officer
Forward-Looking Information
This news release may contain forward-looking statements (including "forward-looking information" within the meaning of applicable Canadian securities laws), including information relating to the magnitude or quality of mineral deposits, the economic assessment and estimates regarding the mine life of the New Elk coal mine, and the timing and completion of financings. The timing of drilling and work recommended by the 43-101 Report is based on current internal expectations, which may prove to be incorrect. Other risk factors are discussed under "Risk Factors" in Cline's 2008 Annual Information Form, and include management's ability to anticipate and manage risk factors. Such forward-looking statements necessarily involve known and unknown risks and uncertainties that are common to junior mineral exploration companies. These risks and uncertainties include, among other things, the Company's need for additional funding to continue its exploration efforts, changes in general economic, market and business conditions, and competition for, among other things, capital and skilled personnel. These statements are not a guarantee of future performance and undue reliance should not be placed on them. The Company undertakes no obligation to update or revise any forward-looking statements except as required by applicable securities laws.
Copies of the Company's public filings under applicable Canadian securities laws are available at www.sedar.com. The Company further cautions that information contained on, or accessible through, this website is current only as of the date of filing such information and may be superseded by subsequent events or filings.
The technical information contained in this press release has been prepared and reviewed by
This Press Release is not for distribution to U.S. news services or for dissemination in the
Head Offices:
For further information: Ken Bates, President and CEO, Ernest Cleave, Vice-President and CFO, Office: (416) 572-2002, Email: [email protected], Website: www.clinemining.com
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