COALCORP ENTERS INTO SETTLEMENT AGREEMENT
TORONTO, March 21 /CNW/ --
TORONTO, March 21 /CNW/ - Coalcorp Mining Inc. (NEX-CCJ) ('Coalcorp') is
pleased to announce that it has entered into a settlement and mutual
release (the 'Settlement Agreement') with certain affiliates of the
Goldman Sachs Group, Inc. ('Goldman Sachs'), including Colombian
Natural Resources I SAS ('CNRI'). Pursuant to the Settlement Agreement,
the parties have irrevocably released and discharged each other from
any and all claims, including those raised by CNRI in the Notices of
Claim announced on November 3, 2010 and December 3, 2010, arising out
of or relating to the March 19, 2010 sale of the La Francia I Mine,
related infrastructure and other assets to a subsidiary of Goldman
Sachs,.
'With this settlement, the last of Coalcorp's known material liabilities
have been resolved. As a result we are now in a position where we can
focus on executing our strategy for growth,' said Richard Lister,
Chairman of Coalcorp. He added 'the recent investments in Formation
Metals Inc. (TSX-FCO) and Gold Hawk Resources Inc. (TSXV-GHK) have been
very successful for us and we look forward to pursuing other
investments.'
In accordance with the terms of an escrow agreement (the 'Escrow
Agreement') dated March 19, 2010 among Computershare Trust Company of
Canada ('Computershare'), Coalcorp, and CNRI and Colombian Natural
Resources II SAS (collectively, the 'CNR Parties'), Computershare was
holding US$8,000,000 in escrow in connection with the Transaction.
Pursuant to the Settlement Agreement, US$6,230,576 will be released to
the CNR Parties and US$1,769,423 will be released to Coalcorp.
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.
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Steven Cresswell
Interim Chief Executive Officer
416-644-1217