Coal Off-Take / Marketing Discussions to Complete Funding, Expected to be Finalised in Early 2013
- Commitment received from EIG Global Energy Partners to provide a US$300 million senior debt facility
- Advanced discussions underway with a number of trading parties to provide remaining required funding
- Financing arrangements will fully fund capital requirements to achieve first production at Vista
- Definitive financing agreements expected to be finalised in the first quarter of 2013
- Recently agreed binding rail terms with CN provide certainty around a substantial portion of FOB cash costs
- Vista remains on track for construction in 2013 and first production in 2015
CALGARY, Dec. 20, 2012 /CNW/ - Coalspur Mines Limited ("Coalspur") (ASX: CPL, TSX: CPT) is pleased to announce that it has entered into a Commitment Letter with EIG Global Energy Partners (" EIG") to provide Coalspur a US$300 million senior secured debt facility (the " Facility"). Proceeds from the Facility will fund the majority of the development capital required to achieve first production at the Vista Coal Project (" Vista"). Advanced discussions are also underway with a number of strategic trading/off-take parties to secure additional funding for Vista and finalise coal marketing arrangements.
The Facility, combined with the anticipated additional funding, will provide Coalspur with the funds required to commence production at Vista, provide working capital and repay the outstanding loan facility with the Highland Park Group. Coalspur expects the funding and off-take agreements to be executed and effective by the end of the first quarter of 2013.