TORONTO, Sept. 29 /CNW/ - Coalcorp Mining Inc. ("Coalcorp") (TSX-CCJ) announced that it has 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.
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About Coalcorp
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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.
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Forward Looking Statements Disclaimer
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Except as set forth herein, no decision on any particular initiative or alternative as been reached at this time and there can be no assurance that the strategic review process or the commencement or continuation of certain of the described legal actions will proceed, or that the Company will pursue any particular transaction or course of legal action. The Company does not intend to make any further announcements regarding the strategic review process or any legal actions unless and until its Board has approved a specific transaction or course of legal action or otherwise deems disclosure of developments is appropriate.
Statements made in this news release may be forward-looking and therefore subject to various risks and uncertainties. Some of the forward-looking statements may be identified by words such as "expects" "will", "may", "intends", "plans", and similar expressions. These statements are not guarantees of future performance or actions and undue reliance should not be placed on them. 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 undertakes no obligation to update forward-looking statements if circumstances or management's plans should change except as required by applicable securities laws. Such statements speak only as of the date made.
For further information: Joseph Belan, Interim Chief Executive Officer, +57-1-658-5050 Ext: 9990
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