Stocks & Investing
Stocks and Investing
Stocks and Investing
Tue, July 10, 2012 
July 10, 2012 09:01 ET
CanAm Acquires New Coal Leases Totaling 574 Acres
CALGARY, ALBERTA--(Marketwire - July 10, 2012) - CanAm Coal Corp. (TSX VENTURE:COE) (OTCQX:COECF) ("CanAm" or the "Company") is pleased to report that between April 1 and June 30, 2012, its 50% owned affiliate Birmingham Coal & Coke ("BCC"), has acquired the mineral and surface mining rights under a "fee simple" arrangement of three properties totaling 574 acres. These coal properties are adjacent to the Old Union Mine and are an integral part of the Old Union 2 mine complex that is currently being permitted.
The first of the fee simple mining rights was acquired from the State of Alabama; Department of Conservation and Natural Resources (the "State"), through a competitive bid process. The lease was described by the State in the public notification process as follows; "containing 324 acres, more or less, with 214.49 mineable acres, more or less as reflected on a map available from the state land division. The estimated recoverable reserve quantity is 401,525.28 tons of coal. The Department of Conservation and Natural Resources guarantees no quantities." The State lease is for a term of 5 years.
The second fee simple property is referred to by the Company as the Baccus property and is adjacent to the State property and the Old Union mining complex. It consists of 170 acres in total with a management estimate of 121 minable acres. The lease has an indefinite term that runs until the mining and reclamation are completed.
The third fee simple property is another State lease totaling 80 acres with 28 acres of minable land. This lease was also obtained through a competitive bid process, has a term of 5 years and is an integral part of the Old Union mining complex.
All properties have been partially permitted by BCC prior to the acquisition of the fee simple mining rights and the Company is not anticipating any issues in the completion of the permits. The coal on each of these properties is considered to have the same qualities/characteristics as the coal that is currently being mined from the Old Union mine. On average, the proximate analysis has indicated 9% ash, 1.0% sulfur and 12,400 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 [ www.sedar.com ]).
"The acquisition of additional coal leases that are within or adjacent to our current mines is an integral part of our growth story", said Tim Bergen, CEO of CanAm. "In addition, we believe that these lands hold good quality coals that fit well within our product portfolio and are in demand by our customers."
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, the exclusive rights to a proprietary Coal to Liquids technology which converts coal into liquid fuels (such as oil, jet fuel) at an economical cost with zero airborne emissions 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.
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 [ 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.
