The $US10 million working capital will be used to progress Vista and enable Coalspur to conduct a strategic review process over the rest of 2014 and into early 2015.
Coalspur intends to enter into a definitive agreement with Thiess for a minimum five-year term, after earlier earmarking and abandoning Sedgman and, prior to that, Forge as the contractor for Vista.
Thiess was selected based on its proven track record as a total services mining contractor, together with attractive pricing of the contracted services, which underpinned Vista’s free on board cost position, Coalspur CEO Gill Winckler said.
“I am very pleased with the level of interest generated throughout the mining contractor tender process and want to congratulate Thiess on their submission,” he said.
“We look forward to developing a highly productive, long-term relationship with Thiess.”
The strategic alternatives that will be pursued and reviewed by Coalspur may include full funding of the Vista project, the sale of all or a portion of the company’s assets, formation of a joint venture, the outright sale of the company, a merger or other business combination transaction involving a third party and a refinancing and recapitalisation.
The strategic review process is also a requirement under the EIG Letter Agreement.
EIG has notified Coalspur that it is prepared to provide a total senior debt facility of $US175 million.
“When the EIG Facility was executed in April 2013, the market conditions were such that a facility of up to $U350 million was attractive for the development of Vista,” Winckler said.
“Continued softness in thermal coal markets has clearly had an impact on the whole industry and on the amount of project funding EIG can support at this point in time.
“I appreciate EIG’s diligence through the sizing process and their constructive support via the provision of additional liquidity into Coalspur to enable us to dedicate the necessary time and resources to review all strategic alternatives available to enhance the value of Vista for all stakeholders.”
