TORONTO, Nov. 16 /CNW/ - Cline Mining Corporation (TSX: CMK) ("Cline" or the "Company") is pleased to announce that it has repaid in full its 2008 CDN$19 million and its February 2010 CDN$3 million loan from Mitsui Matsushima International Pty. Ltd. ("Mitsui"). Mitsui chose not to exercise its option to convert any of the principal balance into shares of Cline Mining Corporation.
The proceeds from the Mitsui loans for CDN$19 million and CDN$3 million were used for the acquisition and development of the New Elk Coal Mine, located in Las Animas County, Colorado, U.S.A. The mine is on schedule and on budget for first production of high quality metallurgical coking coal in Q4 of 2010, increasing to an expected rate of 3 million tonnes of clean coal annually by the end of calendar 2012. Cline's New Elk Coal Mine has a mineral resource estimate of 315 million tons of coal in-place as documented in the 2008 Behre Dolbear independent NI 43-10 Technical Report. The initial Behre Dolbear report was referenced by Agapito Associates, Inc. in its Technical Report titled "NI 43-101 Technical Report of the New Elk Mine Project Los Animas County, Colorado, USA" prepared by Gary L. Skaggs, P.E., P.Eng. and Timothy Ross, P.E. dated November 1, 2010. Both reports are available on SEDAR and Cline's website at www.clinemining.com.
In addition to its coal resource, the coal mine assets include a coal preparation plant, product coal silos, buildings, surface real estate, conveyor systems, electrics, underground workings with mine portal access from the plant site, mine permit and a permitted coal refuse disposal site. For an update on mine progress and permitting, please see Cline's News Release dated September 30, 2010.
About Cline: Cline has significant metallurgical coal property interests in Colorado, U.S.A. and in British Columbia, Canada with NI 43-101 compliant independent technical reports. Cline Mining Corporation is a mine development company focused on the exploration and development of metallurgical steel making coals in the U.S. and Canada, iron ore in Madagascar and gold on its Cline Lake Gold Mine Property in northern Ontario, Canada.
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 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 NI 43-101 Technical Report is based on current internal expectations, which may prove to be incorrect. Other risk factors are discussed under "Risk Factors" in Cline's Annual Information Form for its 2009 financial year end, 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 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.
Principal Offices:
Toronto Office: Brookfield Place, 181 Bay Street, 3rd Floor, Clarkson Gordon Heritage Building, Toronto, ON, M5J 2T3
Vancouver Office: Suite 2950 -650 West Georgia Street, Vancouver, BC V6B 4N8
For further information:
Contacts: 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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