Cardero makes hay while the sun doesn't shine

COAL’S downturn has turned out to be a positive for Vancouver-headquartered Cardero Resource Corp, which has acquired an additional 13 coal licence applications, along with increasing a secured line of credit and extending a secured loan this week.
Cardero makes hay while the sun doesn't shine Cardero makes hay while the sun doesn't shine Cardero makes hay while the sun doesn't shine Cardero makes hay while the sun doesn't shine Cardero makes hay while the sun doesn't shine

A coal outcrop at Carbon Creek, courtesy Cardero Resources

Anthony Barich

The applications are contiguous with the eastern and western borders of the Carbon Creek property as part of the Carbon Creek Joint Venture, whose ground now covers 30,391 hectares of coal exploration licences and licence applications – more than double the previous land package.

"The downturn in the metallurgical coal market presents a significant opportunity for Cardero to increase its property interests in the northeast coalfield and beyond,” Cardero president and CEO Henk van Alphen said.

"While we wait for commodity prices to recover, we will continue to seek good-value acquisitions, which we believe will add value to our coal asset portfolio on the back of improved metallurgical coal markets."

The company also negotiated a $US1 million ($A1.3 million) increase in its existing $5 million credit line from lenders controlled by Los Angeles lawyer Robert C Kopple, as well as a one-year extension on the due date of its outstanding $2 million secured note held by a lender.

“I am delighted that Cardero has been able to negotiate an increase in our long-term credit facility, effectively securing the company's medium to long-term working capital needs,” Alphen said.

“The increase in the line of credit and extension of the payment date for the outstanding secured note are both significantly less dilutive than any alternative financing mechanisms available to Cardero at this time, given current market conditions."

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