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VANCOUVER, British Columbia, April 2, 2014 (GLOBE NEWSWIRE) --
Coalspur Mines Limited ("Coalspur" or "Company") (ASX:CPL) (TSX:CPT) is pleased to announce that definitive amendment agreements have been signed giving effect to the stand-by debt facility of C$10 million provided by Borrowdale Park S.A. ("Borrowdale Park"), which was previously announced by the Company on January 28, 2014 (the "Stand-by Facility").
Furthermore, Coalspur has been granted a waiver from ASX Listing Rule 10.1 ("Waiver"), to the extent necessary to permit Coalspur and its subsidiaries to extend the current security over its assets ("Security") in favour of Borrowdale Park in relation to the existing C$30 million Borrowdale Park loan facility, to the Stand-by Facility without shareholder approval. Under the Waiver:
(a) the Security includes a term that if an event of default occurs and Borrowdale Park exercises its rights under the Security, neither Borrowdale Park nor any of its associates can acquire an interest in an asset of Coalspur in full or part satisfaction of the Company's obligations under the Stand-by Facility, or otherwise deal with the assets of the Company, without the Company first complying with any applicable Listing Rules, including Listing Rule 10.1;
(b) a summary of the material terms of the Stand-by Facility and Security will be set out in each annual report of Coalspur;
(c) any variation to the terms of the Stand-by Facility, which is not a minor change or which is inconsistent with the terms of the Waiver, must be the subject of shareholder approval; and
(d) Coalspur must seek to discharge the Security when the funds advanced under the Stand-by Facility are repaid, or if not discharged, seek shareholder approval for the continuation of the Security for any further loan facility amount.
Coalspur is a coal development company with approximately 55,000 hectares of coal leases located within the Hinton region of Alberta, Canada. Coalspur's flagship project is Vista, which covers approximately 10,000 hectares and provides a large scale, surface mineable, thermal coal development. Vista is located adjacent to CN Rail's main line, which is suitable for the transport of coal to deepwater ports on Canada's west coast. Coalspur has secured a port allocation agreement with Ridley Terminals Inc., which is essential to the logistics supply chain necessary to export coal from Vista to the growing demand from the Asia Pacific countries.