SOURCE: Americas Energy Company

November 24, 2009 10:13 ET

Americas Energy Company - Tennessee Signs Agreement to Purchase Evan's Coal Company, Inc.

KNOXVILLE, TN--(Marketwire - November 24, 2009) - Americas Energy Company (OTCBB: AENY), a publicly traded company currently based out of British Columbia, and Americas Energy Company, Inc. "AECo," based out of Knoxville, Tennessee, announced today that AECo has entered into an agreement to purchase the assets of 38-year-old Evans Coal Company, Inc. (Evan's), based in Flat Lick, Kentucky. AECo is in the process of being acquired by AENY. AECo began initial mine production on Evan's Upland Church Surface Mine in October of this year and has been negotiating to acquire the balance of their assets. The acquisition includes leased mineral rights to an estimated 25,000 +/- acres of property located in Bell, Harlan, Knox and Breathitt County, Kentucky, 60+ pieces of heavy equipment, and three generations of community service.

"The purchase of Evan's Coal Company will be a major milestone for our company. We are not only acquiring a major specialty coal reserve in Southeastern Kentucky, but more than 40 years of goodwill in the Flat Lick, Pineville, Kentucky area. Mr. John Gargis, our Executive Vice President, is overseeing the production from the Upland Church mine as well as the acquisition of Evans Coal Company," said Chris Headrick, President and Co-CEO of Americas Energy Company. Mr. Headrick added, "We plan to maintain that strong community presence and develop the assets the Evan's family assembled over the last 15 years. Evan's has an enormous high-grade specialty coal reserve that includes Kentucky Blue Gem, Jellico and the Harlan coal seams. We are also acquiring two additional Mining Permits that will allow us to immediately begin expanding our specialty coal production. Mr. Gargis plans to begin operations on the Hwy 92 permit in the first weeks of December in the Upper and Lower Rooster coal seams producing an estimated 15,000-20,000 short tons of coal per month. We also plan initiate an aggressive drilling plan to further identify our reserve base of high-grade specialty coal across the property. "

About Americas Energy Company

We are a consolidator of high quality energy properties, operating out of our main offices in Knoxville, TN. We currently operate projects in both Kentucky and Tennessee. AECo invests in energy projects throughout the Americas. We are currently evaluating several additional coal projects, as well as an oil and gas rework project in Southeastern Kentucky.

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: The statements in this release relating to completion of the acquisition and the positive direction are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some or all of the results anticipated by these forward-looking statements may not occur. Factors that could cause or contribute to such differences include, but are not limited to, contractual difficulties which may arise, the failure to obtain necessary approvals, the failure to complete the business combination between AECo - Tennessee and AENY - British Columbia, the future market price of AENY common stock and the ability to obtain the necessary financing.

Contact Information

  • Company Headquarters
    Contact: Christopher Headrick
    249 N. Peters Rd.
    Suite 300
    Knoxville, TN 37923
    Phone: (865) 238-0668 x 105
    Web Site: www.americasenergycompany.com
    Email: Email Contact

    Mail to:
    Evan's Coal Company, Inc.
    HC88 Box 2120
    Flat Lick, KY 40935