CanAm Coal Corp.

January 08, 2013 08:10 ET

CanAm Coal Corp.: Obtains Posey Mill II Mine Permit

CALGARY, AB--(Marketwire - Jan 8, 2013) - CanAm Coal Corp. (TSXV: COE) (OTCQX: COECF) ("CanAm" or the "Company") is pleased to report that the Company's subsidiary, Birmingham Coal & Coke ("BCC"), was issued permit # 3963 by the Alabama Surface Mining Commission ("ASMC") for the Posey Mill II Mine ("PM2"). This permit is a 5 year surface mining permit covering a total of 781 acres. The PM2 Mine is adjacent to the Bear Creek and the Knight Mine and, with most infrastructure already in place, the Company is targeting a February 2013 production startup. Annual productive capacity at the Posey Mill II mine is forecasted at 100,000 to 150,000 tons per annum.

The coal at the PM2 mine is considered to have similar qualities/characteristics as the coal that is currently being mined from the existing Bear Creek and Knight Mines. On average, the proximate analysis has indicated 12% ash, 0.7% sulfur and 11,500 BTU/lb. These average values are consistent with the assays reported from drilling; mine face sampling and product deliveries. (See NI 43-101 report dated July 2011 on

"The issuance of this permit is especially important as the majority of the coal to be produced at Posey Mill II has been sold into a long term contract. We are working diligently to build the necessary infrastructure and anticipate production of coal in February 2013", said Tom Lewis, Vice President of BCC. "This is our third new permit in the last 5 months; the Old Union II permit was obtained in August 2012 and the Knight permit was obtained in November 2012, and combined the three permits cover approximately 2,352 acres of land that is now fully permitted for production."

About CanAm Coal Corp.

CanAm is a coal producer and development company focused on growth through the acquisition, exploration and development of coal resources. CanAm's main activities and assets include its coal operations 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.

Forward Looking Information and Statements

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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Calgary, AB

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Source: CanAm Coal Corp. via Thomson Reuters ONE


Contact Information

  • For Further Information:

    CanAm Corporate Office:

    Jos De Smedt, President & CEO

    Tel: 403.262.3797

    Toll Free: 1.877.262.5888

    Email: Email Contact

    Brisco Capital Partners:

    Scott Koyich, Partner

    Tel: 403.262.9888

    Email: Email Contact