CALGARY, ALBERTA -- (Marketwire) -- 01/25/13 -- CanAm Coal Corp. (TSX VENTURE: COE)(OTCQX: COECF) ("CanAm" or the "Company") is pleased to announce that it has entered into operating facilities totaling $3 million with a major US Bank. These 1 year revolving loan facilities bear an interest rate of Libor + 3%, which currently approximates 3.2%.
The facilities will be used for issuing letters of credit pertaining to the Company's reclamation bonding program as well as for general operating purposes. In addition, the Company's bonding agency has agreed to accept letters of credit for the majority of bonds issued by the Company thereby substantially eliminating the requirement for the Company to maintain cash collateral.
"This is the first time in its history that CanAm has been able to secure an operating facility from a major financial institution," said Scott Bolton, Chief Financial Officer of CanAm. "This is further evidence that we are establishing ourselves as an emerging coal producer with a sustainable and profitable business model."
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 operating coal mines in Alabama which produce high quality metallurgical and thermal coal for sale into the local power and industrial markets. Other coal and related opportunities continue to be evaluated on an ongoing basis.
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 www.sedar.com. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.
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.
CanAm Corporate Office:
Jos De Smedt
President & CEO
403.262.3797 or Toll Free: 1.877.262.5888
Brisco Capital Partners:
Most Popular Stories
- High-Tech Home Theaters Undergoing a Revolution
- Nestle, Superior Grocers Promote Healthy Meals
- Bernanke Wishes He'd Explained the Crisis Better
- EPA Eases Back on Biofuels Mandate
- Ellen DeGeneres Producing HGTV Series
- China Slows Down: The Cohen Column
- Hollywood Bets Big Again on Summer Movies
- Biden Leaves Ukraine as Russian Invasion Threat Rises
- Stocks See 6th Gain in a Row on Solid Earnings
- IRS Awards Bonuses to Employees Who Owe Back Taxes