CALGARY, AB / ACCESSWIRE / April 30, 2014 / CanAm Coal Corp. (TSXV: COE) ("CanAm" or the "Company") is pleased to announces that is has refinanced substantially all of its equipment loans and secured an additional US $3 million financing package with a major US Bank.
The Company, through its subsidiary Birmingham Coal & Coke Co, Inc., has agreed with its US banking partner to amend its existing equipment financing agreement. The main changes are to increase the principal amount of the loan by US $3 million (with a term of 54 months) and to reset the amortization period for the outstanding amount of the original loan (US $13.2 million outstanding at April 2014) to 48 months. The blended interest rate on the facility is 4.04%. Included in the revised agreement is a new covenant requiring the Company to convert at least $6,500,000 of its 2012, 9.5% debenture to equity prior to July 31, 2014. This represents approximately 50% of the face value of the debenture. The debenture matures in August 2016.
Company President & CEO, Jos De Smedt commented: "We are very pleased with this renewed and increased commitment from our US banking partner. We have developed a great relationship with them since 2012 and certainly, we believe, that this is a clear demonstration of their confidence in our Company and our business plan."
For Further Information:
CanAm Corporate Office:
Jos De Smedt, President & CEO
Toll Free: 1.877.262.5888
Email: [email protected]
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.
SOURCE: CanAm Coal Corp.