Western Canadian Coal Corp, which produces high quality metallurgical coal from mines located in the northeast of British Columbia, has entered into an agreement dated December 31, 2008, pursuant to which, the firm will make available a loan facility on a secured basis of up to US$36 million to Cambrian Investment Holdings Limited, a wholly-owned subsidiary of Cambrian Mining Plc, the Company's major shareholder.

Cambrian Mining Plc is a diversified mining group, headquartered in London, UK. The group operates in three continents and produces four commodities.

The Loan will be used to repay CIH's existing debt under a financing facility with Investec Bank (UK) Limited. However, the loan will be available to Cambrian immediately subject to and upon satisfaction or waiver of the conditions set out in the loan agreement.

Sources revealed that, Cambrian Investment shall pay a fee of US$600,000 in connection with the Loan.

The Loan shall accrue interest at a rate of 12% per annum until repayment and shall become payable in full on the earlier of 90 days after the delivery of a written notice from Western to CIH that Western has failed to obtain the necessary approvals of its shareholders for the proposed business combination.