Marret buys bonds that had been issued by Cline Mining

Marret Asset Management said July 15 that, on behalf of various client accounts under management, it has successfully completed the acquisition of C$9.5m principal amount of 10% senior secured convertible bonds of Cline Mining, a Canadian company that controls an idled coal mine in Colorado.

Approximately C$3.2m of the Convertible Bonds were issued as payment for the June 17 interest payment owing to Marret client accounts and approximately C$3.19m of the Convertible Bonds were issued as payment for certain fees owing to certain Marret client accounts. The balance of the Convertible Bonds were issued for cash equal to their principal amount.

Prior to the acquisition, Marret client accounts did not own or control any Convertible Bonds or common shares of Cline. After giving effect to the acquisition, Marret client accounts will beneficially own and control, directly and indirectly, the Convertible Bonds which are convertible into 1,898,199,600 common shares of Cline based on an exercise price of C$0.005 per share of the company, representing 90.08% of the company’s issued and outstanding shares on a non-diluted basis.

Marret said it acquired the Convertible Bonds for investment purposes on behalf of various client accounts and may, depending on market and other conditions, increase or decrease the client accounts’ beneficial ownership, control or direction over the shares, through market transactions, private agreements, or otherwise.

Cline is a Canadian mining company focused on the maintenance and development of its 100% owned New Elk coking coal mine located in Colorado. The company also has interests in metallurgical coal reserves in Canada, an iron ore project in Madagascar, and the Cline Lake gold property in northern Ontario, Canada.

Marret is an employee-owned credit fixed income manager based in Toronto.

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.