Two of Coal International’s divisions entered into a $US7 million agreement with CIT Equipment Finance.
CI’s Atlantic Leaseco and Maple Coal inked the deal so that it may acquire equipment for its West Virginia operation, Eagle No. 1, a segment of the Maple Coal metallurgical coal complex.
The company’s total required for the equipment was $10 million, with the balance of the needed funds coming from Cambrian Mining.
Under the terms of the deal, the payment responsibility by the two divisions has been guaranteed by CI.
“[The] equipment financing facility will enable the company to advance its development of the Eagle No. 1 mine, which remains on track to commence production in the second quarter,” said company chief W Durand Eppler.
“[CI’s] ability to both secure financing on the basis of its own credit and to raise funds through the £8.5 million placing announced on May 22, 2007 marks a significant step forward for Coal International and a vote of confidence for the Maple Coal project.”
Coal International holds operating properties in West Virginia as well as Canadian and UK-based coal producer interests.