Cline Mining Corp. (
TSX: T.CMK,
Stock Forum) said Monday it has reached a settlement agreement with the Province of British Columbia under which the company has agreed to abandon certain coal licences as well as certain coal applications in return for the payment of $9.8 million in cash.
The agreement is a final settlement of claims Cline had outstanding against the Province of British Columbia.
The company is currently operating under forbearance agreements with its senior lenders, which expire on the earlier (i) April 30, 2014 and (ii) the occurrence of a Forbearance Termination Event as such term is defined therein.
The use of proceeds from the settlement referenced above is subject to the terms of the forbearance agreements and the underlying indentures to which they relate.