TORONTO, ONTARIO--(Marketwired - Dec. 16, 2013) - Cline Mining Corporation ("Cline" or the "Company") announced today that it has entered into a forbearance agreement with Computershare Trust Company of Canada (the "Trustee").
Due to Cline's present financial situation, a semi-annual interest payment in the amount of approximately US$3.3 million could not be made on its outstanding US$65.5 million 10% senior secured bonds and a semi-annual interest payment in the amount of approximately Cdn.$552,000 could not be made on its outstanding Cdn.$12.3 million 10% senior secured convertible bonds. Cline has consequently entered into two forbearance agreements with Computershare Trust Company of Canada, the Trustee under the 10% senior secured bond trust indenture dated December 13, 2011, as supplemented, and the 10% senior secured convertible bond trust indenture dated July 8, 2013, as supplemented, pursuant to which the Trustee has agreed to forbear from taking any action to enforce certain of its rights under either indenture until January 16, 2014.
Copies of the forbearance agreements will be made available on the Company's reference page at the System for Electronic Document Access and Retrieval (www.sedar.com).
Cline is a Canadian mining company focused on the maintenance and development of its 100% owned New Elk coking coal mine located in Colorado, U.S.A. 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.