Cline Mining Corporation
TSX VENTURE : CMK

Cline Mining Corporation

July 19, 2005 11:10 ET

Cline: ThyssenKrupp Close Deal Coal Marketing-Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 19, 2005) - Not for distribution to U.S. newswire services or for dissemination in the United States.

Cline Mining Corporation (TSX VENTURE:CMK). Cline Mining Corporation and ThyssenKrupp MinEnergy GmbH ("ThyssenKrupp") of Essen, Germany have entered into an Agreement for the exclusive, long term purchase, marketing and sale by ThyssenKrupp of coal produced by Cline coal mines for use in the exclusive ThyssenKrupp Territory. The ThyssenKrupp Territory comprises European Union countries, Ukraine, Turkey, Pakistan, Central (Latin) and South America and ThyssenKrupp steel and coking plants wherever located excepting Japan, Korea and Taiwan. Fifty percent of the Cline coal mines production is slated for delivery into the Territory under the Agreement.

The Company has completed the private placement financing with ThyssenKrupp for 4 million Units, at a price of $1.36 per Unit for total proceeds to Cline of $5.44 million. Each Unit consists of one Common Share and one Share Purchase Warrant, with each Share Purchase Warrant entitling ThyssenKrupp to purchase one additional share of Cline at a price of $0.75 per share until January 8, 2007.

The Company has also completed a private placement financing with Mitsui Matsushima International Pty. Ltd. ("Mitsui Matsushima") for 1 million Units, at a price of $1.36 per Unit for total proceeds of $1.36 million. Each Unit consists of one Common Share and one Share Purchase Warrant, with each Share Purchase Warrant entitling Mitsui Matsushima to purchase one additional share of Cline at a price of $0.75 per share until January 8, 2007. Mitsui Matsushima previously acquired 3 million shares of Cline and now owns 4 million shares following this financing.

The securities issued pursuant to these private placements may not be traded until November 9, 2005.

As part of the arrangements, both ThyssenKrupp and Mitsui Matsushima will be entitled to be represented on the Cline board of directors and to participate in future financings.

Cline Mining Corporation is a mine development company focused on the exploration and development of metallurgical coal in Canada for the international seaborne coal trade market. The Company website is located at www.clinemining.com. Shares of the company trade on the TSX-Venture Exchange under the symbol CMK.

Cline Mining Corporation

"Ken Bates"

Ken Bates, President



Head Office Vancouver Office
530 Lasalle Boulevard 650 West Georgia Street
Sudbury, Ontario Suite 2950, P.O. Box 11578
P3A 1W9 Vancouver, B.C.
V6B 4N8


The TSX Venture Exchange neither approves nor disapproves of this press release.

Contact Information

  • Cline Mining Corporation
    Ken Bates
    President
    (416) 830-0709
    or
    Cline Mining Corporation
    Allan Taylor
    Secretary-Treasurer
    (705) 560-8100
    (705) 560-8521 (FAX)
    or
    Cline Mining Corporation
    Gordon Gormley
    Executive Vice President
    (604) 687-7789
    (604) 687-7765 (FAX)