Pine Valley Reports on its CCAA Restructuring Process
Pine Valley Mining Corporation (TSX: PVM)(OTCBB: PVMCF) (the "Company" or "Pine Valley") reports on a number of developments relating to its CCAA process and provides an update regarding volumes of oxidized coal.
The Company previously reported its plans to put its operations on a care and maintenance basis after completing a planned shipment of approximately 46,000 tonnes of coking coal. That coal shipment has been transported to Ridley Terminals and is available for immediate loading. A vessel has been nominated to take the shipment and the Company expects that it will be loaded today and tomorrow. The Company's mining contractor, Tercon Mining PV Ltd. is no longer providing any mining services to the Company and has served notice, accepted by the Company, of termination of the mining services contract effective November 2, 2006.
In addition, the Company has retained an independent financial advisor (the "Advisor") to assist it as it assesses its alternatives to restructure the Company pursuant to the CCAA process. The Advisor is in the process of contacting companies that may have an interest in participating in a restructuring plan, and has entered into confidentiality agreements with a number of such companies.
Any securities that the Company might issue in connection with a CCAA restructuring plan will not be registered under the United States Securities Act of 1933 or any U.S. state securities laws, and unless so registered may not be offered or sold in the United States, except pursuant to an exemption from, or in a transaction subject to, the registration requirements of the Securities Act of 1933 and applicable state securities laws. This press release is issued pursuant to Rule 135© of the Securities Act of 1933, and does not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of any such securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
On October 10, 2006 the Company reported that it anticipated mining approximately 113,000 tonnes of raw oxidized coal during the three months ending December 31, 2006. Since that date, based on the work of the Company's geologist evaluating actual experience in the mining pit, the estimate for the tonnage of oxidized coal within the same mining block has been reduced to being not more than 45,000 raw tonnes. The analysis of the Company's volumes of oxidized coal was conducted by or under the supervision of Mr. Roy Fougere, P.Eng., the General Manager at Falls Mountain Coal Inc., the Company's wholly-owned subsidiary. Mr. Fougere has 18 years of mining experience, including experience with western Canadian coal mines of similar geological complexity.
This news release contains certain "forward-looking statements", as defined in the United States Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties including but not limited to economic, competitive, governmental and geological factors effecting the Company's operations, markets, products and prices and other risk factors. There can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include the Company's dependence on the steel industry, volatility in coal prices, accidents and other risks associated with mining operations, the Company's need for and availability of additional financing, the restrictions imposed under the Company's existing debt arrangements and its debt service requirements and the other risk factors discussed in greater detail in the Company's various filings with the Securities and Exchange Commission and Canadian securities regulators, including the Company's Form 20-F dated June 21, 2006.
PINE VALLEY MINING CORPORATION
Robert Bell, President and Chief Executive Officer
Source: Market Wire (November 6, 2006 - 8:30 AM EST)
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