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CLUiF, From Page 1 <br />trading days leading up to Dec. 24, <br />2012. The maturity date of the <br />bonds would be extended into Feb- <br />ruary 2016. <br />Due to a share subscription <br />right, current shareholders could <br />end up owning 46% in Cline, <br />while the bondholders would <br />hold the additional 54% stake. <br />The agreement also indicates <br />that US$25 million in the princi- <br />pal bond amount will be ex- <br />changed for 2.1 billion shares in <br />Cline, which equates to 1.2¢ per <br />share. <br />Cline says the restructuring ad- <br />dresses short- and long -term fi- <br />nancial difficulties, and sustains <br />three years of operations under <br />care and maintenance. Though the <br />transaction would typically re- <br />quire shareholder approval, Cline <br />has applied for an exemption, cit <br />ing financial hardship. <br />focused on New Elk's Northern <br />and Southern areas, which it be- <br />lieves can supplement the Cen- <br />tral zone and offer opportunities <br />for low- capital brownfield ex- <br />pansion. <br />"The results of the review <br />have clearly demonstrated <br />that the resource can be trans- <br />formed into a world -class min- <br />ing complex. The entire plan <br />has been built from first prin- <br />ciples, taking into account <br />geology, equipment and infra- <br />structure," Stone stated fol- <br />lowing his review. "A detailed <br />implementation action plan — <br />inclusive of all required fac- <br />tors, including safety, human <br />resources, financials, logis- <br />tics, engineering and mainten- <br />ance — is well underway for <br />the entire operation." <br />- New Elk was expected to pro- <br />duce 426,000 clean tonnes of met <br />Cline's stock has plummeted 92% since <br />New Elk's closure in mid July. <br />"This restructuring is an import- <br />ant step in [Cline's] efforts in de- <br />veloping a long -term financial <br />solution to address the uncertainty <br />regarding the magnitude and ex- <br />tent of the downturn in the coal <br />markets," Bates explains. <br />Despite the restructuring, <br />Toronto Stock Exchang e started a <br />delisting review on Jan. 4, giving <br />Cline 60 days to regain compliance <br />with requirements. <br />Cline brought in chief operat- <br />ing officer David Stone prior to <br />New Elk's closure to conduct a <br />review on the mining complex so <br />that it could maximize output <br />from existing infrastructure and <br />achieve the highest short -term <br />production output. The company <br />CAREERS ADVE= <br />$12.65 per agate line. Minimum size 2 c <br />Closing date is 10 days prior to publication date. All Cc <br />For further Careers advertisin info <br />Joe Crofts (416) 510 -6816 -. icrofts @nothernminer.com, Dave Chauvii <br />Teri Richardson (604) 688 -9908 - t6chard, <br />Fax: (416) 510 -51 <br />` Canada: 1- 800 - 268 -7742, ext. 6824, USA: <br />coal in 2012, with plans to ramp-uP <br />output to 2.7 million tonnes of sale- <br />able coal per year. New Elk hosts <br />resources totalling 561 d llion <br />tonnes of steelmaking a <br />ther- <br />mal-grade coal. <br />Things have looked increas- <br />ingly grim for Cline's sharehold- <br />ers, as the company's stock has <br />plummeted 92% since New Elk's <br />closure in mid -July, when it traded <br />at 66¢. <br />Cline's shares stayed depressed <br />in the new year, with the company <br />closing at 64 on Jan. 4 on the back <br />of 1.5- million share -trade vol- <br />umes. <br />Cline has 209 million shares out- <br />standing for a $12.6-million press - <br />time market capitalization. <br />gt <br />des o f ,,,,,4.3 g a <br />56 <br />res <br />ld t� fir✓ �� �.. P"�'� <br />