The amount of the debt facility is an increase of $50 million from previously announced funding, and will be used to fund the majority of the development costs for the first phase of Coalspur’s Vista coal project in Alberta.

Stage one of Vista is expected to cost the company $445 million and will produce about 3 million tonnes per annum of coal from 2015.

The company is awaiting regulatory approvals and once these have been confirmed and the funding arrangement has been approved by shareholders, Coalspur will commence production.

Shareholder approval meetings are scheduled for early June.

The facility will be provided by investment funds advised and managed by EIG and will be 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 capitalised or paid in cash.

The drawdown is scheduled to align with the Vista development schedule with an initial $37 million drawn down followed by a further $120 million drawn upon receipt of regulatory approvals to start construction on the Vista project.

"Coalspur has achieved a major milestone in entering into these agreements for the majority of funding for the first stage of Vista,” Coalspur president and chief executive officer Gill Winkler said.

“The increased level of the facility as well as the flexibility that has been afforded the company by EIG reflects their belief in Vista. EIG is an astute investment group with an excellent track record and their support for Vista, along with the continued support of our major shareholder, Borrowdale Park, will enable us to begin construction activities, as planned, in the coming months.

“The funding also allows Coalspur to retain 100% ownership of this world-class project, which provides flexibility for the future. “

Coalspur also retains all off-take and marketing rights.

“This is an exciting juncture for the company. We are in the final stages of our regulatory approval process for Vista and remain on schedule to move into construction shortly after the shareholder meeting, which will be held to vote on these funding arrangements,” he said.

Regulatory approvals are expected in the coming months.

The company will continue to progress joint venture, marketing and off-take arrangements with interested parties to secure the remaining funding for Vista.