SOURCE: America West Resources, Inc.

America West Resources, Inc.

May 04, 2011 08:30 ET

America West Resources Completes $4.5 Million Financing and Converts $5 Million in Debt to Equity

SALT LAKE CITY, UT--(Marketwire - May 4, 2011) - America West Resources, Inc. (OTCBB: AWSR), a domestic compliant coal producer with mining operations in Central Utah, today announced that it has closed its previously reported private placement, raising total gross proceeds of approximately $4.5 million. The terms of the private placement provided for the issuance of 4.5 million shares of common stock offered at $1.00 per share.

New York City-based John Thomas Financial acted as the placement agent for the offering.

In addition, early last month America West Resources filed a Form 8-K with the U.S. Securities and Exchange Commission detailing that it had arranged for the conversion of approximately $5.0 million from debt to equity at a conversion price of $1.00 per share.

According to Dan Baker, President and CEO of America West, "The debt conversion, when combined with the capital raised in the private placement, has materially strengthened our Company's balance sheet. This marked improvement in our financial standing represents a critical achievement for America West and positions us well for continued advancement of our mine development strategy and towards our goal of achieving positive cash flow in the current quarter, notwithstanding any unforeseen challenges that may arise."

The offers and sales of the shares of common stock noted above were made without registration under the Securities Act of 1933, as amended, and the securities laws of certain states, in reliance on the exemptions provided by Section 4(2) of the Act and Regulation D under the Act and in reliance on similar exemptions under applicable state laws.

About America West Resources, Inc.
Headquartered in Salt Lake City, Utah, America West Resources is an established domestic coal producer focused on the mining of compliant (low-sulfur) coal and its sale primarily to utility companies and industrial customers in the western U.S. The Company operates the Horizon Mine, which has recoverable, compliant, high BTU coal reserves. For more information, please visit

Forward-Looking Statements
This news release contains forward-looking statements Please refer to the Company's Form 10-K and other filings with the United States Securities and Exchange Commission (the "SEC") for additional information regarding risks and uncertainties, including, but not limited to, the risk factors listed from time to time in such SEC reports. Copies of these filings are available through the SEC's electronic data gathering analysis and retrieval system (EDGAR) at The forward-looking statements in this release do not constitute guarantees of future performance. Investors are cautioned that statements in this press release which are not strictly historical statements, including, without limitation, statements regarding current or future mining output, ability to obtain necessary equipment, personnel and permits to mine coal, production capabilities, management's strategy, plans and objectives for future operations, plans and objectives for production, plans and objectives for present and future production, plans and objectives for regulatory approval, and anticipated results, constitute forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated, including, without limitation, risks associated with coal production, mining in general and in our mines in particular, ability to achieve the coal output anticipated, ability to obtain permits, ability to hire and retain the necessary personnel, as well as other risks detailed in our filings with the SEC. We assume no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.

Contact Information

    Dodi B. Handy
    President & CEO
    (Twitter: dodihandy)
    Kathy Addison
    (Twitter: kathyaddison)
    or via email at
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