Coalcorp shares rise after settlement with Glencore, Prodeco

Nov 25 (Reuters) - Shares of Coalcorp Mining Inc CCJ.TO rose as much as 39 percent Tuesday, after the Canadian mine developer said it settled arbitrations with Glencore International A.G [GLEN.UL] and a contract dispute with Prodeco.

Shares of Coalcorp were up 5.5 Canadian cents at 26 Canadian cents on the Toronto Stock Exchange. They touched a high of 28.5 Canadian cents earlier in the day.

Coalcorp and one of its subsidiaries signed a deed of settlement and release with Glencore in connection with arbitrations over the sale and purchase of two coal agreements, it said in a statement.

Coalcorp also said it and Prodeco have entered into an agreement, which provides that all differences in connection with a Prodeco contract are settled without admissions of liability.

Prodeco is Xstrata Coal's (XTA.L) wholly-owned, thermal coal operation in Colombia. (Reporting by Amit Kumar in Bangalore; Editing by Maju Samuel) ((amit.kumar.edit@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 4135 5800; Reuters Messaging: amit.kumar.edit@thomsonreuters.com@reuters.net))