But it dose show we are moving forward .
VANCOUVER, BRITISH COLUMBIA, Aug 04, 2010 (MARKETWIRE via COMTEX News Network) --
North American Gem Inc. (NAG) (TSX VENTURE: NAG) through its subsidiary, North American Gem US, Inc. (NAG US) is preparing to post the bond for the North American Gem #3 Mine. Once the bond has been posted the application (Application permit number #861-0502) to mine will be fully approved by the Kentucky Department of Natural Resources (KDNR).
Currently the permit application is under American Blue Gem & Steam Coal, LLC (ABGSC) (agreement signed August 2009). It is notable that ABGSC will allow NAG US to mine during the permit transfer process; the only known delay to the commencement of mining will be the official assignment of the operator, Kentucky Mine Partners LLC (KMP), which takes approximately 7-10 days. After the bond has been posted and the assignment of the operator is complete NAG US will begin mining at the North American Gem #3 Mine.
NAG has also arranged a non-brokered private placement, subject to the approval of the TSX Venture Exchange, of up to 15,000,000 units at a price of
.12 per unit for total proceeds of up to $1,800,000.
Up to 15,000,000 units will be issued as non flow-through units consisting of one common share and one full warrant. One full warrant will entitle the holder to purchase one additional common share of the Company at a price of
.15 per share during the first year and at a price of
.18 per share until expiration in the second and final year.
The proceeds of the private placement will be used for several planned cost. Most importantly partial capital will go towards the posting of the bond on the upcoming North American Gem #3 Mine (Swan Pond Lease; Application permit number #861-0502). This will activate the mining permit and allow NAG to begin production using KMP as the mining operator.
Additional capital will go towards building infrastructure at the North American Gem #3 Mine site, potential acquisitions and bonding, additional upgrading for the North American Gem Processing Facility (Mine Permit #861-8012), building of access roads onto permitted leases and general working capital.