[miningmx.com] – UNIVERSAL Coal, an Australian listed coal development and production company, said it had secured R525m in debt from Investec Bank to fund the second phase of its New Clydesdale Colliery (NCC) and to refinance existing debt.
At full production NCC will produce two million tonnes of coal for use by high-end domestic metallurgical and power users. A long-term coal sales agreement is currently being negotiated, the company said.
“We are entering an exciting growth phase,” said Tony Weber, CEO of Universal Coal. “Once we reach steady-state production at NCC, the company’s net production will have doubled,” he added.
“Further, by securing corporate debt financing on more favourable terms than project financing, Universal Coal’s net value will be significantly enhanced, and its ability to bring long-life, multi-product coal operations to full production demonstrated,” he said.
