Vancouver's Western Canadian Coal Corp. (TSX:WTN) is loaning US$36 million to Cambrian Investment Holdings Ltd. (CIH), a wholly owned subsidiary of London, U.K.-based Cambrian Mining Plc. (AIM:CBM).
The loan will be used to repay CIH's existing loan with Investec Bank (UK) Ltd.
Western Canadian Coal will receive a US$600,000 fee in connection to the loan, which will bear 12% interest per year until repayment.
Part of the loan will be repaid with the $5 million loan Western Canadian Coal received from Cambrian in September 2007.
Cambrian and its wholly owned subsidiaries own approximately 34% of Western Canadian Coal's shares.
Western Canadian Coal's share price range during the past week: between $0.56 and $0.73; 52-week high: $10.99; 52-week low: $0.43.