Cline Mining names new CFO, works out forbearance agreement

Cline Mining (TSX: CMK), which owns an idled coal mine in southeast Colorado, said June 17 that it has appointed Paul Haber as its Chief Financial Officer and Corporate Secretary.

The company’s Executive Chairman, Mark Haywood, stated: “Paul is a very experienced financial officer and Chartered Accountant. We are very pleased to have Paul working with us as we continue to address the challenges faced by new management in order to rebuild Cline over the months to come.”

Haber has been the Chief Financial Officer of various TSX and TSXV listed companies and also sits on the board of several public and private companies.

Cline announced June 18 that it has entered into a forbearance agreement with Computershare Trust Co. of Canada (the “Trustee”). Said Haywood:”Cline was unable to make its June 17 interest payment of approximately [C]$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 about C$3.2m could not be made on its outstanding (C)$65.5m 10% senior secured bonds. Cline has consequently entered into a forbearance agreement with Computershare Trust Co. of Canada, the Trustee under the 10% senior secured bond trust indenture dated Dec. 13, 2013, as supplemented (the “Trust Indenture”). 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 on behalf of certain bondholders.

Cline is a Canadian mining company focused on the development of its 100% owned New Elk coking coal mine located in Colorado. The mine was idled last year due to tough coal market conditions. The company also has interests in met coal reserves 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.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.