|By Marketwired .||
|April 21, 2014 05:46 PM EDT||
TORONTO, ONTARIO -- (Marketwired) -- 04/21/14 -- Cline Mining Corporation ("Cline" or the "Company") announced today that it has entered into a Settlement Agreement (the "Agreement") with the Province of British Columbia pursuant to which the Company has agreed to abandon certain coal licences as well as certain coal applications in return for the payment of $9.8 million in cash. The Agreement is a final settlement of claims Cline had outstanding against the Province of British Columbia.
The Company is currently operating under forbearance agreements with its senior lenders, which expire on the earlier (i) April 30, 2014 and (ii) the occurrence of a Forbearance Termination Event as such term is defined therein. The use of proceeds from the settlement referenced above is subject to the terms of the forbearance agreements and the underlying indentures to which they relate.
Cline is a Canadian mining company focused on the maintenance and development of its 100% owned New Elk coking coal mine located in Colorado, U.S.A. The Company also has interests in metallurgical steel making coals in Canada, an iron ore project in Madagascar, and the Cline Lake gold property in northern Ontario, Canada. Cline's head office is in Toronto and it has a site office at its New Elk mine in Colorado.
For further details on Cline, including copies of the indentures and forbearance agreements referenced above, please refer to Cline's web site (www.clinemining.com) and Cline's Canadian regulatory filings on SEDAR at www.sedar.com.