CALGARY, AB--(Marketwire - Jul 6, 2012) -
CanAm Coal Corp. (TSXV: COE) (OTCQX: COECF)
("CanAm" or the "Company") is pleased to announces that is has refinanced
substantially all of its equipment loans with a major US Bank.
The Company and its affiliates; Birmingham Coal & Coke Co, Inc., Cahaba
Contracting & Reclamation, LLC and RAC Mining LLC (collectively referred to as the "CanAm Group"), operate a significant fleet of mining equipment and prior to this arrangement equipment financing was provided by equipment dealers and local Alabama based banks. The agreement refinances a total of US$15.6 million of CanAm Group's equipment debt over a term of 54 months at an annual interest rate of 3.25%. This arrangement will reduce annual loan payments by approximately US$800,000 and lower annual interest charges by approximately US$200,000. The equipment facility is securitized by the underlying equipment.
"This represents another major milestone for our Company", said Jos De Smedt,
President and COO of CanAm. "Attracting a major US financial institution, which
is among the top 20 largest Banks in the US based on assets, is a clear
demonstration that we have built a stable and solid business with a great long
About CanAm Coal Corp.
CanAm is a coal producer and development company focused on growth through the
acquisition, exploration and development of coal resources and resource-related
technologies. CanAm's main activities and assets include its four operating coal mines in Alabama and the Buick Coal Project which holds significant coal
resources, 188 million indicated and 103 million inferred resources, in
Colorado, USA (see the technical report entitled "Limon Lignite Project, Elbert
County, Colorado, USA," dated October 26, 2007 and filed on SEDAR on November
2, 2007). Other coal and related opportunities continue to be evaluated on an
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
This news release may contain certain forward-looking information. All
statements included herein, other than statements of historical fact, is
forward-looking information and such information involves various risks and
uncertainties. There can be no assurance that such information will prove to be
accurate, and actual results and future events could differ materially from
those anticipated in such information. A description of assumptions used to
develop such forward-looking information and a description of risk factors that
may cause actual results to differ materially from forward-looking information
can be found in the Company's disclosure documents on the SEDAR website at
www.sedar.com. The Company does not undertake to update any forward-looking
information except in accordance with applicable securities laws.
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Source: CanAm Coal Corp. via Thomson Reuters ONE