America West Resources Converts $11.27 Million in Debt to Equity and Completes $2 Million Equity Financing
Jul 21, 2011 7:30:00 AM
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SALT LAKE CITY, UT -- (MARKET WIRE) -- 07/21/11 -- America West Resources, Inc. (OTCBB: AWSR), a domestic compliant coal producer with mining operations in Central Utah, today announced that it has converted a total of $11,266,923 of debt and accrued interest into 11,266,923 shares of its common stock at $1.00 per share. In addition, the Company further reported that it has completed a private placement of 2,000,000 common shares priced at $1 per share, raising $2 million in gross proceeds from accredited and institutional investors. America West intends to use the net proceeds from the offering to purchase new and refurbished mining equipment in support of its expansion initiative underway at its Horizon coal mining operation in Utah, and for general working capital requirements.
John Thomas Financial, an independent broker/dealer and investment banking firm in New York City's financial district, acted as lead agents for the Offering and managed approximately $4.97 million of the debt to equity conversion.
Commenting on the transactions, Dan Baker, President and Chief Executive Officer of America West, stated, "This debt to equity conversion is a major achievement for our Company and one that is expected to materially strengthen our financial foundation. We are very thankful for the support of all our note holders who, through this conversion, have demonstrated their confidence in our growth strategy and future success. Moreover, the support that we have continued to receive from John Thomas Financial has proven of immeasurable value to America West and we are deeply appreciative of their efforts."
Continuing, Baker said, "Looking ahead, we remain on point to achieve our near term goal of achieving positive cash flow from our mining activities at Horizon. We have purchased two shuttle cars that are expected to help accelerate our current monthly coal production to more than 60,000 tons, and will aid in our plans to expand Horizon's operations from two to three mining sections by the end of the year. At this juncture, our management team continues to engage in active discussions with several groups capable of supplying us with the growth capital we'll require to achieve this greater goal and to realize our ultimate plan of transitioning from a continuous mining platform to a long wall mining operation."
For more detailed information regarding the debt to equity conversions and private placement, please refer to a related Form 8-K filed with the U.S. Securities and Exchange Commission yesterday.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the Company's securities in the United States. The securities described in this press release and in the related 8-K filed with the U.S. Securities and Exchange Commission have not been registered under the Securities Act of 1933 and may not be offered or sold within the United States or to U.S. persons unless an exemption from such registration is available.
About America West Resources, Inc.
Headquartered in Salt Lake City, Utah, America West Resources is an established domestic coal producer focused on the mining of compliant (low-sulfur) coal and its sale primarily to utility companies and industrial customers in the western U.S. The Company operates the Horizon Mine, which has recoverable, compliant, high BTU coal reserves. For more information, please visit www.americacoal.com.
Forward-Looking Statements
This news release contains forward-looking statements Please refer to the Company's Form 10-K and other filings with the United States Securities and Exchange Commission (the "SEC") for additional information regarding risks and uncertainties, including, but not limited to, the risk factors listed from time to time in such SEC reports. Copies of these filings are available through the SEC's electronic data gathering analysis and retrieval system (EDGAR) at www.sec.gov. The forward-looking statements in this release do not constitute guarantees of future performance. Investors are cautioned that statements in this press release which are not strictly historical statements, including, without limitation, statements regarding current or future mining output, ability to obtain necessary equipment, personnel and permits to mine coal, production capabilities, management's strategy, plans and objectives for future operations, plans and objectives for production, plans and objectives for present and future production, plans and objectives for regulatory approval, and anticipated results, constitute forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated, including, without limitation, risks associated with coal production, mining in general and in our mines in particular, ability to achieve the coal output anticipated, ability to obtain permits, ability to hire and retain the necessary personnel, as well as other risks detailed in our filings with the SEC. We assume no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.
AI
