$25MM Drawdown and redo of Warrants
CLINE MINING ISSUES SECOND ROUND OF BONDS IN PRINCIPAL AMOUNT OF
US$25 MILLION
Toronto, Ontario, Canada April 30, 2012. Cline Mining Corporation (“Cline” or the “Company”)
(TSX:CMK) is pleased to announce that it has today issued a second round of certain senior secured
bonds having a principal amount of US$25 million (the “Bonds”). This Bond issuance is made in
connection with the Company’s previously announced debt financing whereby the Company entered into
a trust indenture (the “Trust Indenture”) with Marret Asset Management Inc. (“Marret”) and
Computershare Trust Company of Canada as trustee for certain investment funds advised by Marret (the
“Lenders”).
The Bonds issued today will mature on February 27, 2014 and will bear a coupon of 10% per annum,
payable semi-annually in arrears in equal instalments.
In consideration for the Company being permitted to draw down on the commitment of the Lenders to
take up the Bonds, the Company issued 1.25 million common share purchase warrants (the “Second Draw
Warrants”) to such Lenders. The Second Draw Warrants are exercisable at a price of C$2.49 and will
expire on April 30, 2015.
Ken Bates, the President and CEO of the Company, commented “This Bond issuance will assist Cline in
meeting its ongoing targeted production rates and important expansions at the New Elk mine in addition
to providing funds for capital improvements.”
In consideration for the waiver of certain provisions of the Trust Indenture, the Company also entered into
a supplemental trust indenture on the date hereof which requires the Company to cancel all previously
issued warrants (including the Second Draw Warrants) and to issue new warrants on certain revised terms
to the holders thereof. To effect the foregoing, the Company intends on entering into a new warrant
indenture with CIBC Mellon Trust Company (the “New Warrant Indenture”) pursuant to which
10,000,000 common share purchase warrants (the “Warrants”) will be issued on the terms described
below.
Following the execution and delivery of the New Warrant Indenture and the issuance of the Warrants, the
Company intends to terminate the existing warrant indenture dated October 14, 2011 (the “Original
Warrant Indenture”) entered into with CIBC Mellon Trust Company. Pursuant to the Original Warrant
Indenture, 10,000,000 warrants have been issued by the Company to certain arm’s length holders on the
following basis: 7,500,000 warrants were issued at an exercise price of C$1.75 per common share
expiring on September 30, 2014, 1,250,000 warrants were issued at an exercise price of C$2.49 per
common share expiring on February 27, 2015 and today, 1,250,000 warrants were issued at an exercise
price of C$2.49 per common share expiring on April 30, 2015. These 10,000,000 warrants will be
cancelled and the Warrants will be issued pursuant to the New Warrant Indenture at an exercise price of
C$1.15 per common share and will expire on the date that is 3 years from their date of issue.
The effective date of the Warrants will be on or after May 14, 2012, subject to receipt of TSX approval.
The holders of the Warrants will continue to be at arm's length to the Company. GMP Securities L.P. acted as financial advisor to the Company in connection with the issuance of the
Bonds.
About Cline: Cline has significant metallurgical coal property interests in North America with NI 43-101
compliant independent Technical Reports. Cline Mining Corporation is a mine development company
focused on the exploration and development of metallurgical steel making coals in North America, iron
ore in Madagascar and the Cline Lake Gold Mine Property in northern Ontario, Canada.
CLINE MINING CORPORATION
Ken Bates, President and Chief Executive Officer
Forward-Looking Information
This news release may contain forward-looking statements (including "forward-looking information"
within the meaning of applicable Canadian securities legislation and "forward-looking statements" within
the meaning of the US Private Securities Litigation Reform Act of 1995) relating to, amon