Access to this facility and funds from the OGL’s planned equity raising would ensure it covers all capital costs needed to start coal production at the Ebenezer mine by the end of calendar year 2013, the company said.
It would also allow the company to start environmental and mining studies on the feasibility for development of the Bremer View project into a future mining area.
The company has agreed terms for the debt finance facility with EIG Global Energy Partners, a Washington DC based specialist energy and resources investment firm.
EIG is completing a comprehensive due diligence process on OGL’s proposed project development plans for Ebenezer and OGL, the company said.
“The EIG debt facility will be available for drawing subject to satisfactory completion of that due diligence, final investment committee approval, documentation being entered into and post the satisfaction of certain customary conditions precedent,” OGL said.