CALGARY, ALBERTA--(Marketwire - Jan. 8, 2013) - CanAm Coal Corp. (TSX VENTURE:COE) (OTCQX:COECF) ("CanAm" or the "Company") is pleased to report that the Company's subsidiary, Birmingham Coal & Coke ("BCC"), was issued permit # 3963 by the Alabama Surface Mining Commission ("ASMC") for the Posey Mill II Mine ("PM2"). This permit is a 5 year surface mining permit covering a total of 781 acres. The PM2 Mine is adjacent to the Bear Creek and the Knight Mine and, with most infrastructure already in place, the Company is targeting a February 2013 production startup. Annual productive capacity at the Posey Mill II mine is forecasted at 100,000 to 150,000 tons per annum.
The coal at the PM2 mine is considered to have similar qualities/characteristics as the coal that is currently being mined from the existing Bear Creek and Knight Mines. On average, the proximate analysis has indicated 12% ash, 0.7% sulfur and 11,500 BTU/lb. These average values are consistent with the assays reported from drilling; mine face sampling and product deliveries. (See NI 43-101 report dated July 2011 on www.sedar.com).
"The issuance of this permit is especially important as the majority of the coal to be produced at Posey Mill II has been sold into a long term contract. We are working diligently to build the necessary infrastructure and anticipate production of coal in February 2013", said Tom Lewis, Vice President of BCC. "This is our third new permit in the last 5 months; the Old Union II permit was obtained in August 2012 and the Knight permit was obtained in November 2012, and combined the three permits cover approximately 2,352 acres of land that is now fully permitted for production."