Cline Mining, a Canadian company that controls the idled New Elk underground coal mine in Colorado, said July 3 that the June 18 forbearance agreement with Computershare Trust Co. of Canada has been extended until July 12.
Company Executive Chairman Mark Haywood stated: “Cline has been negotiating an alternative financing arrangement with Marret Asset Management Inc. and is expected to close the financing by the 5th July 2013 and ensure that the terms of the forbearance agreement are satisfied.”
Also, Cline Mining said it has decided to postpone its Annual General Meeting date from July 19 until Aug. 15.
This is not the only recent finance-related news for the company. Cline Mining said June 17 that it has appointed Paul Haber as its Chief Financial Officer and Corporate Secretary.
Cline announced June 18 that it has entered into the forbearance agreement with Computershare. Said Haywood on June 18: “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.”
Cline is a Canadian mining company focused on the development of its 100% owned New Elk coking coal mine in southeast Colorado. The mine was idled last year due to a slack coal market and is still out of action. The company also has interests in metallurgical coal reserves in western Canada, an iron ore project in Madagascar, and the Cline Lake gold property in northern Ontario, Canada.