While the Utah-based company did not disclose the identity of the operator, it did confirm it had funded $US7.5 million against a total $9.4 million commitment and that it sought out a funding partner with in-depth mining industry knowledge.
“There were many challenges present in the transaction from the type, use, and locations of equipment to the challenges present with an evolving global coal market,” Mazuma officials said.
Several factors due to the miner’s recent growth and acquisitions also presented additional obstacles.
“Because of these challenges, the financing required innovative structuring components along with solving the coal producer's funding objectives,” Mazuma said.
The lender said the operator had concerns over its leases’ cash flow needed for growth efforts and the ability to expense payments over time with a changing environmental landscape.
“This coal producer has a very large footprint in the mining industry and they continue to draw upon Mazuma Capital's unique market positions and access to funds to propel their business forward,” account executive Kelly Holladay said, adding that it had provided capital to the miner over a period of years.
A Mazuma spokesman did not return a request for information about project funding developments with the producer.