SOURCE: American Power Corp.

American Power Corp.

September 14, 2010 09:00 ET

American Power Corp. Closes $10 Million Financing Agreement

DENVER, CO--(Marketwire - September 14, 2010) -  American Power Corp. (OTCBB: TGMP) ("American Power" or "the Company") is pleased to announce it has closed a financing agreement for total gross proceeds of $10 million through a 2.5 year stock issuance agreement with Black Sands Holdings, Inc.

The funding to be provided under this agreement will be used to finance the Company's ongoing exploration, development and acquisition strategies, as well as general working capital purposes.

"This financing will be key in executing on our exploration and development of the Pace coal property," stated Al Valencia, President and CEO of American Power Corp. "The agreement includes a warrant component that could provide an additional $10 million to American Power over the coming years. Now that we have this funding agreement in place, we feel ever more confident in moving forward with our exploration program which will take us another step forward towards producing the anticipated substantial coal resources on our acreage."

The securities offered have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent a registration or an applicable exemption from the registration requirements. For full details on the agreement, please refer to the Company's latest SEC filings.

About American Power Corp.
American Power Corp. is a publicly traded, dynamic energy company based in Denver, Colorado. The Company was established with the focus of acquiring near-term, large-scale coal projects in close proximity to national transportation links. American Power envisions developing its large coal resources to support electricity generation.

American Power is a member of the Montana Mining Association, and holds approximately 29,000 acres in Judith Basin County, Montana. The estimated resources in place, based on exploration work conducted by Mobil Oil Co. (now ExxonMobil Corp.), and in several independent studies, range from 172 million up to 410+ million tons of high volatile bituminous B coal.

American Power Corp. trades on the NASD OTC BB under ticker symbol TGMP. Shareholders are invited to contact corporate communications toll free at (800) 537-1110 for further information or visit the Company's website at www.americanpowerco.com to download our Fact Sheet and Corporate Profile.

ON BEHALF OF THE BOARD OF DIRECTORS,
American Power Corp.
Al Valencia, CEO

Forward-Looking Statements
Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements in this news release include that American Power Corp. will receive $10 million from its financing arrangement with Black Sands Holdings, Inc., that the Company's 29,000-acre leases in Judith Basin County, Montana, have high volatile bituminous B coal in the range of 172 million and up to 410+ million tons, and that the Company will proceed to kick start the development of its advanced Pace Coal Project in Judith Basin County, Montana. Readers should also refer to the risk disclosures outlined in the Company's quarterly reports on Form 10-QSB, annual reports on Form 10-KSB, and the Company's other disclosure documents filed from time-to-time with the Securities and Exchange Commission available at www.sec.gov

Cautionary Note to U.S. Investors
The United States Securities and Exchange Commission ("SEC") permits mining companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this document that SEC's guidelines may prohibit us from including in filings with the SEC.

Contact Information

  • Investor Relations Information:
    American Power Corp.
    Toll Free: 1-800-537-1110
    E-mail: Email Contact