TORONTO, Nov. 3 /CNW/ - Coalcorp Mining Inc. (NEX-CCJ) ("Coalcorp") announces that it has received a Notice of Claim from Colombian Natural Resources I SAS ("CNRI") with respect to alleged losses in the amount of US$37,450,518.
CNRI is claiming indemnification pursuant to an agreement 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 resulting, supposedly, from certain locomotives not being in good working order, additional import VAT 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. CNRI has instructed Computershare to release the US$8,000,000 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 has directed 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.
Securities of Coalcorp are currently cease traded pursuant to orders of the Ontario, British Columbia and Manitoba securities commissions and as a result trading on NEX is suspended. The cease trade orders were issued for failure to file annual continuous disclosure documents within the applicable time periods; however, as previously announced, Coalcorp filed all such documentation on October 29, 2010 and applied to have the cease trade orders revoked.
Forward Looking Statements Disclaimer
Forward Looking Statements made in this news release may be forward-looking and therefore subject to various risks and uncertainties. Such statements can typically be identified by terminology such as ''may'', ''will'', ''could'', ''should'', ''expect'', ''plan'', ''anticipate'', ''believe'', ''intend'', ''possible'', ''continue'', "objective" or other similar expressions concerning matters that are not historical facts. 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information:
Steven Cresswell
Interim Chief Executive Officer
416-644-1217
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