TORONTO, ONTARIO--(Marketwired - June 18, 2013) - Cline Mining Corporation ("Cline" or the "Company") (News - Market indicators) announced today that it has entered into a forbearance agreement with Computershare Trust Company of Canada (the "Trustee").
The Company's Executive Chairman, Mr. Mark Haywood stated that "Cline was unable to make its June 17 interest payment of approximately $3.2 million and has agreed with the Trustee to forbear from taking action under the Trust Indenture until the end of this month whilst an alternative financing arrangement is negotiated with Marret Asset Management Inc."
Due to Cline's present financial situation, a semi-annual interest payment in the amount of approximately $3.2 million could not be made on its outstanding $65.5 million 10% senior secured bonds. Cline has consequently entered into a forbearance agreement with Computershare Trust Company of Canada, the Trustee under the 10% senior secured bond trust indenture dated December 13, 2013, as supplemented (the "Trust Indenture"), pursuant to which the Trustee has agreed to forbear from taking any action to enforce certain of its rights under the Trust Indenture until June 30, 2013, provided that Cline continues to proceed with an alternate financing with Marret Asset Management Inc., on behalf of certain bondholders.
A copy of the forbearance agreement will be made available on the Company's reference page at the System for Electronic Document Access and Retrieval (www.sedar.com).
About Cline
Cline is a Canadian mining company focused on the 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. With a head office in Toronto and site offices at the mine, Cline is led by a management and operations team with over 100 years of exploration and mining experience.
For further details on Cline, please refer to Cline's web site (www.clinemining.com) and Cline's Canadian regulatory filings on SEDAR at www.sedar.com.
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.