TORONTO, Sept. 30 /CNW/ - Coalcorp Mining Inc. ("Coalcorp" or the "Company") (TSX-CCJ) is providing its first Default Status Report in accordance with National Policy 12-203: Cease Trade Orders for Continuous Disclosure Defaults ("NP 12-203"). On September 16, 2009, the Company announced that it would be delayed in the filing of its annual financial statements and related MD&A for the financial year ended June 30, 2009 (the "Annual Financials") beyond the filing deadline of September 28, 2009. As also announced on that date, in accordance with the requirements of NP 12-203, the Company has applied to the Ontario Securities Commission for the issuance of a temporary management cease trade order relating to the Company's securities to be in effect until such time as it files its Annual Financials and 2009 Annual Information Form.
Update Matters
--------------
The Company reports the below matters which are material changes to the information contained in the announcement issued by the Company on September 16, 2009.
On September 29, 2009, the Company announced that it commenced a legal action in Toronto, Ontario in the Ontario Superior Court of Justice against certain former directors and officers of Coalcorp and others. The 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. In the action Coalcorp is seeking damages and restitution in connection with three transactions completed in late June 2008 involving the sale of the Caypa Mine and the port lands at Cartagena, and the purchase by Coalcorp of GC Coal. Coalcorp also seeks damages and restitution in respect of the purchase in 2006 by Coalcorp of port lands in the Cartagena region, the La Francia Mine and certain exploration rights. The Statement of Claim also seeks damages and restitution in respect of expenses paid by Coalcorp from 2005-2008 that are alleged to be improper. In connection with these claims, the Statement of Claim seeks, among other things, damages in the amount of approximately $161 million, an order requiring certain of the defendants to reimburse Coalcorp for all compensation paid to them during the relevant periods, and an order for an accounting of profits made by the defendants from the allegedly improper transactions.
The Company confirms that, except as described herein and in its initial default announcement: (i) there has been no material change to the information set out in its initial default announcement filed pursuant to NP 12-203; (ii) there has been no failure by the Company in fulfilling its stated intention with respect to satisfying the provisions of the alternative information guidelines set out in NP 12-203; (iii) there is no actual or anticipated specified default subsequent to that disclosed in the initial default announcement; and (iv) there is no other additional material information concerning the affairs of the Company that has not been generally disclosed.
The Company will continue to provide bi-weekly updates, as required by NP 12-203, until the required filings have been made and the Company is no longer in default.
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.
Statements made in this news release may be forward-looking and therefore subject to various risks and uncertainties. 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.
ContactsJoseph BelanInterim Chief Executive Officer
+57-1-658-5050 Ext: 9990
