Coalcorp Mining Inc.’s plan to sell the La Francia mine in Colombia could face an injunction to prevent the deal from proceeding.
Coalcorp has received a letter from counsel for Blue Pacific Assets Corp. advising that Blue Pacific may begin proceedings should certain conditions not be addressed, including the payment of about US$2 million in royalties. Coalcorp has a royalty agreement with Blue Pacific for coal production from a portion of the La Francia mine, though that royalty agreement is the subject of a separate legal action undertaken by Coalcorp last September.
Coalcorp had planned to sell the La Francia mine in north-east Colombia, related infrastructure assets, and all the shares in Adromi Capital Corp. to a subsidiary of Goldman Sachs for about US$151 million.
Coalcorp said it continues to believe that proposed deal is in the best interest of the company and its shareholders.
(Dow Jones)
