Coalspur Mines Ltd. (ASX: CPL, TSX: CPT) said July 16 that it has achieved financial close and first drawdown of US$37m in regards to the senior debt facility secured from EIG Global Energy Partners for the development of its Vista coal mine project in Alberta, Canada.
Coalspur President and CEO Gill Winckler said: “We are very pleased with the EIG facility and the confidence it demonstrates in Vista. Securing a facility that covers up to 75% of development capital for Vista is a major achievement and a key milestone for Coalspur. The facility allows us to now embark upon development of Vista with production on track for the first half of 2015.”
The company is finalizing regulatory approval for Vista which will allow for the commencement of construction for the project in September. Upon securing regulatory approval, Coalspur expects to make further draw-downs of the EIG senior debt facility.
Coalspur said June 19 that its board has approved the development plan for the Vista project. The development plan for Phase 1 of Vista involves:
- Constructing and commissioning a six million tonnes per annum (Mtpa) capacity thermal coal facility by mid-2015, with the capability to expand to 12 Mtpa;
- A development capital cost of C$458m, with a lump sum turn-key contract covering US$221m (about C$226m) of this expenditure; and
- Constructing the 6 Mtpa facility in one stage as opposed to the previously envisaged two stages.