OTCPK:COPJF - Post by User
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Zorro99on Jul 06, 2012 3:27pm
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Post# 20089954
NR dated July 6
NR dated July 6 CanAm Refinances Equipment Debt with Major US Bank
CALGARY, ALBERTA--(Marketwire - July 6, 2012) - CanAm Coal Corp. (TSX VENTURE:COE)(OTCQX:COECF) ("CanAm" or the "Company") is pleased to announce that it has refinanced substantially all of its equipment loans with a major US Bank.
The Company and its affiliates; Birmingham Coal & Coke Co, Inc., Cahaba Contracting & Reclamation, LLC and RAC Mining LLC (collectively referred to as the "CanAm Group"), operate a significant fleet of mining equipment and prior to this arrangement equipment financing was provided by equipment dealers and local Alabama based banks. The agreement refinances a total of US$15.6 million of CanAm Group's equipment debt over a term of 54 months at an annual interest rate of 3.25%. This arrangement will reduce annual loan payments by approximately US$800,000 and lower annual interest charges by approximately US$200,000. The equipment facility is securitized by the underlying equipment.
"This represents another major milestone for our Company," said Jos De Smedt, President and COO of CanAm. "Attracting a major US financial institution, which is among the top 20 largest Banks in the US based on assets, is a clear demonstration that we have built a stable and solid business with a great long term future."