RE: Where is the NR everyone is talkingJun 30, 2008 16:21 ET
Cline Board Approves MOU With Mitsui Matsushima International Pty Limited-C$19 Million Loan
TORONTO, ONTARIO--(Marketwire - June 30, 2008) -
Cline Mining Corporation ("Cline" or the "Company") (TSX:CMK) announces that its Board of Directors has approved the Memorandum of Understanding with Mitsui Matsushima International Pty. Limited of Australia ("MMI"), a wholly owned subsidiary of Mitsui Matsushima Co. Ltd. of Japan. The signing of the MOU was announced on June 23, 2008. The formal documentation is being drawn-up.
The arrangement provides for a loan of C$19 million to Cline with interest at the rate of 6% per annum, with both loan and interest being repayable within two years of draw down. The loan and interest will be secured by a charge on Cline's interest in New Elk and its assets. MMI may convert the loan into up to a maximum of 5,438,500 shares of Cline at a conversion price of C$2.00 per share. The arrangements and terms of the loan are set out in further detail in the above Cline News Release of June 23, 2008. The Toronto Stock Exchange has accepted notice of the proposed transaction and has conditionally approved the issuance of the above 5,438,500 shares in relation thereto.