The funding arrangement with EIG Global Energy Partners, secured in April, provides the company $US350 million.
It is subject to a maturity date of eight years and an interest rate of 8% per annum in cash plus 3% per annum, which can be capitalized or paid in cash.
The money will be used to fund the majority of the development costs for the first phase of Coalspur’s Vista coal project in Alberta.
Stage 1 of Vista is expected to cost the company $445 million and will produce about 3 million tons per annum of coal from 2015.
The company received $37 million from the initial drawdown, which will be followed by a further $120 million drawn upon receipt of regulatory approvals to start construction on the Vista project.
“We are very pleased with the EIG facility and the confidence it demonstrates in Vista,” Coalspur president and chief executive officer Gill Winckler said.
“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.”
In the announcement on Tuesday Coalspur said it was working towards finalizing regulatory approval for the project, following which it would commence construction, hopefully by September 2013.