TORONTO, April 26, 2013 /CNW/ -Cline Mining Corporation ("Cline" or the "Company") (TSX:CMK) announced
today that it has entered into the definitive recapitalization
agreement (the "Recapitalization Agreement") with Marret Asset
Management Inc., as agent for the bondholders and standby purchasers
party thereto. The transactions contemplated by the Recapitalization
Agreement were disclosed by the Company on December 27, 2012. Pursuant
to the Recapitalization Agreement, the Company has filed a preliminary
short form prospectus dated April 25, 2013 (the "Preliminary
Prospectus") with respect to the rights offering and issuance of
warrants to its shareholders, as described in greater detail in the
Preliminary Prospectus. The Preliminary Prospectus is subject to review
by the securities regulators in each province as well as the Toronto
Stock Exchange (the "TSX"). Both the Recapitalization Agreement and the
Preliminary Prospectus are available on the Company's reference page at
the System for Electronic Document Access and Retrieval (www.sedar.com).
Additionally, the Company announced that the TSX has granted an
extension postponing the date of the listing committee hearing to June
25, 2013 to consider whether the Company continues to meet TSX listing
requirements. The continued listing of the Company on the TSX is a
pre-condition to completion of the transactions contemplated by the
Recapitalization Agreement and the Preliminary Prospectus. The
delisting review by the TSX of the Company was announced on January 9,
2013.
About Cline
Cline has metallurgical coal property interests in British Columbia and
in Colorado, U.S.A. including the 100% interest in the New Elk coking
coal mine. Cline is focused on the exploration and development of
metallurgical steel making coals in Canada and the U.S., and on its
iron ore property in Madagascar and its Cline Lake gold property in
northern Ontario, Canada.
Forward-Looking Statements
This press release contains forward-looking statements (including
"forward-looking information" within the meaning of applicable Canadian
securities legislation and "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act
of 1995) relating to, among other things, the proposed rights offering
and warrant issuance of the Company and the Company's future financial
condition. Generally, forward-looking statements can be identified by
the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or "believes", orvariations of such words and phrases or statements that certain actions,
events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Such statements are based on assumptions, estimates, forecasts and
projections made in light of the trends, conditions and expected
developments that are considered to be relevant and reasonable in the
circumstances at the date that such statements are made.
Forward-looking statements are not guarantees of future performance and
such information is inherently subject to known and unknown risks,
uncertainties and other factors that are difficult to predict and may
be beyond the control of the Company. A number of factors and
assumptions may cause actual results, level of activity, performance or
outcomes of the Company to be materially different from those expressed
or implied by such forward-looking statements including, without
limitation, obtaining a final receipt for a prospectus with respect to
the rights offering and issuance of warrants, the approval of the TSX
and the performance of the parties to the Recapitalization Agreement of
their obligations thereunder. There can be no guarantee the Company
will complete the transaction contemplated by the Recapitalization
Agreement and the Preliminary Prospectus. Consequently, undue reliance
should not be placed on such forward-looking statements. In addition,
all forward-looking statements in this press release are given as of
the date hereof. The Company disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, save and except as may be
required by applicable securities laws.
Head Office:
Brookfield Place, 181 Bay Street, 3rd Floor, Clarkson Gordon Heritage
Building, Toronto, ON, M5J 2T3
SOURCE: Cline Mining Corporation
<p> <b>Contact:</b><br/> <br/> Ken Bates, President and CEO<br/> Office: (416) 504-7600<br/> Email: <a href="mailto:kbates@clinemining.com">kbates@clinemining.com</a><br/> </p> <p> Belinda Labatte<br/> Greg DiTomaso<br/> The Capital Lab<br/> Office: (647) 438-2193<br/> Email: <a href="mailto:investor@clinemining.com">investor@clinemining.com</a> </p>