CanAm Coal Corp.

July 06, 2012 09:29 ET

CanAm Coal Corp. : CanAm Refinances Equipment Debt with Major US Bank

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 term future".

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 ongoing basis.

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 The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.

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     originality of the information contained therein. 

Source: CanAm Coal Corp. via Thomson Reuters ONE [HUG#1624731]

Contact Information

  • For Further Information:

    CanAm Corporate Office:
    Tim Bergen, CEO
    Tel: 403.262.3797
    Toll Free: 1.877.262.5888

    1201 - 5th Street SW
    Calgary, AB
    T2R 0Y6

    Brisco Capital Partners:
    Scott Koyich, Partner
    Tel: 403.262.9888