The company has outstanding senior credit notes and a secured line of credit from entities controlled by Robert Kopple.

The METC funds will be used to make a $US3.7 million payment due under the notes. The balance of the required payments will be made under the credit line.

“Mr Kopple supported Cardero through difficult times in 2013 and his support helped secure the future of the company and our flagship asset, the Carbon Creek metallurgical coal deposit,’’ Cardero CEO Henk van Alphen said.

“We believe that Carbon Creek is a valuable asset capable of delivering significant benefit to the company and its shareholders."

The Carbon Creek metallurgical coal deposit is in the Peace River coal district of northeast British Columbia.

The project has a reserve of 121 million tonnes, included within a 468 million tonne measured and indicated resource of ASTM Coal Rank mvB coal.

Cardero completed acquisition of the project in June 2011 and released results of an independent preliminary economic assessment in December 2011, followed by a prefeasibility study in 2012.

The PFS estimates an undiscounted cash flow of $2.2 billion, a net present value of $633 million and an internal rate of return of 24%.