CanAm Coal Completes $1,050,000 Private Placement
CALGARY, ALBERTA--(Marketwired - June 21, 2013) - CanAm Coal Corp. (TSX VENTURE:COE)(OTCQX:COECF) ("CanAm" or the "Company") is pleased to announce that, subject to final regulatory approval, it has completed its previously announced private placement and issued 13,077,675 units at a price of $0.08 per unit for gross proceeds of $1,046,214. Each unit consists of one common share and one common share purchase warrant. Each warrant is exercisable at $0.12 per common share for a period of one year from closing. The common shares issued in connection with the offering are subject to a four month hold period that expires on October 21, 2013.
Finder's fees of 6% ($4,392) were paid and 8% finder's warrants (73,200) were issued in connection with a portion of the private placement. The finder's warrants are exercisable into common shares at a price of $0.085 per common share for a period of one year from closing.
Proceeds of the private placement will be used to execute on CanAm's development and acquisition strategy, to repay outstanding debt obligations and for general operating purposes.
Jos De Smedt, President and Chief Executive Officer of CanAm, stated: "This private placement will further enable us execute on our business plan and provides us with additional financial flexibility. On behalf of CanAm, I would like to thank our existing shareholders and the new shareholders for their support of our Company."
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 www.sedar.com. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.
CanAm Corporate Office:
Jos De Smedt
President & CEO
403.262.3797 or Toll Free: 1.877.262.5888
jdesmedt@canamcoal.com
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