Coalspur Mines Ltd. (TSX:CPT,ASX:CPL) announced yesterday that it has reached an agreement under which Borrowdale Park, its major shareholder, will provide it with a standby funding facility of C$10 million.
The money will allow Coalspur to continue work on its Vista project, where it is completing detailed engineering and design work.
As quoted in the press release:
The Facility will only be drawn upon if and when required. The Facility has an interest rate of 10.5% per annum and will be repaid from proceeds raised as part of the final overall Vista financing solution. Reasonable arrangement and commitment fees are payable by Coalspur. The Facility is in addition to the CAD$30 million balance owing to Borrowdale Park under the existing credit facility.
Gill Winckler, president and CEO of Coalspur, commented:
This Facility ensures that we can continue spending on key aspects of Vista, as we continue with our focus on preparing for construction. Coalspur is very fortunate to have the continued support of Borrowdale Park as we progress discussions to secure the balance of our development funding for Vista, with a view to finalising funding arrangements following regulatory approval and permits.