UPDATE 1-Cline Mining says lender extends loan maturity date

* Says extended principal repayment at 12 pct interest

* Says loan will now mature on July 25, 2011

July 20 (BestGrowthStock) – Canada’s Cline Mining Corp (CMK.TO: )
said its lender, Mitsui Matsushima International Pty Ltd,
agreed to extend the maturity date of the mineral explorer’s
C$19 million ($18.03 million) loan by a year.

Cline, which has stakes in coal and gold properties in
Canada and coal properties in the United States, said the
extended principal repayment will be at an interest rate of 12
percent per annum and will mature on July 25, 2011.

As per the agreement, Cline can prepay the loan and
interest at any time without penalty before maturity.

Mitsui also has the option to convert the loan into Cline
shares at C$1.50 per share, Cline said in a statement.

Cline also said it will repay $2 million of the principal
amount by Dec. 31, and from Jan 2011 it will repay principal
amounts of the debt in amounts equal to 10 percent of the
proceeds from sale of coal from its New Elk Coal Mine each

The company had used the loan to buy the New Elk coal mine
in Colorado, which is scheduled to start production of
metallurgical coking coal in the fourth quarter, it said.

Shares of the Toronto based company were trading down more
than a percent at C$1.52 Tuesday on the Toronto Stock

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(Reporting by Arnika Thakur in Bangalore; Editing by Vyas

UPDATE 1-Cline Mining says lender extends loan maturity date