Coalspur lines up financing for Vista coal mine in Canada

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.
About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.