Coalspur Mines has announced a major strategic review, including the potential sale of its flagship Vista project in Canada, or sale of the company as a whole.
The review followed today’s announcement of Thiess as its preferred contractor for mining services at Vista.
The company also secured a $10 million debt facility with EIG Global Energy Partners to progress the project, proposed to be the largest thermal coal mine in Canada with estimated production of 12 million tonnes per year at completion.
The extension of Coalspur’s debt facility will also be used to fund the strategic review.
It comes after months of funding challenges for the miner, with low coal prices and tough capital market conditions weighing on its expansion plans.
Despite approval by the Alberta Energy Regulator on February 27 this year, Coalspur faces several more licensing approvals, delaying the commencement of construction of the mine well beyond the initial June target date.
These factors led to a reduction of its Canadian staff by almost a third earlier this year.
“I am very pleased with the level of interest generated throughout the mining contractor tender process and want to congratulate Theiss on their submission,” Coalspur chief executive Gill Winckler said.
“We look forward to developing a highly productive, long-term relationship with Theiss”.
Coalspur shares traded unchanged on 5.5 cents on low volume.