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TORONTO, Oct. 27 /CNW/ - Coalcorp Mining Inc. ("Coalcorp") (TSX-CCJ) announced today that it has delivered a notice of conflict to CI Prodeco S.A ("Prodeco") pursuant to the coal supply agreement known as "Prodeco IV" whereby Coalcorp has an obligation to deliver 1,500,000 tonnes of coal to Prodeco. The dispute relates to Prodeco's refusal to accept Coalcorp's delivery of the coal by rail transportation at Prodeco's port notwithstanding the fact that (i) Coalcorp has obtained the necessary permits to transport coal using its trains, and (ii) the "Prodeco IV" agreement affords Coalcorp the right to access Prodeco's port to deliver coal once it is able to use rail transportation.
In accordance with the terms of the Prodeco IV agreement, Coalcorp and Prodeco have 30 days to negotiate a settlement of this dispute before any further arbitration proceedings can be commenced.
Due to this refusal to accept deliveries by rail, Coalcorp is currently delivering coal to Prodeco at the La Francia coal mine under the "Prodeco IV" agreement.
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 CCC 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.
For further information: Joseph Belan, Interim Chief Executive Officer, +57 - 1 - 658 - 5050 Ext: 9990
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