| ||September 22, 2010|
CanAm Coal Second Quarter Sales Increase by 24%
| ||Calgary, AB -- September 22, 2010 -- CanAm Coal Corp. (TSXV: COE) ("CanAm" or the "Company") is pleased to report coal sales of RAC Mining LLC, its 49% owned coal company in Alabama, for the second quarter ending July 31, 2010. Coal sales at RAC Mining LLC continued to increase and were 25,131 tons for the quarter as compared to 20,305 tons in the first quarter ending April 30, 2010. The average for the quarter was 8,377 tons per month as compared to 6,769 tons in the first quarter. This represents an increase of 24% over the first quarter and record production of 9,874 tons was achieved in the month of June 2010. Sales in the second quarter consisted of 81% metallurgical coal (Q1 -- 84%) and 19% thermal or steam coal (Q1 -- 16%).|
Total sales for the six month period ended July 31, 2010 was 45,437 tons or an average of 7,573 per month and was comprised of 82% metallurgical coal and 18% thermal or steam coal. The Company will release its full second quarter financial results at the end of September.
Production statistics since start-up, on November 23, 2009, are as follows:
||Average tons per Month
||% Met Coal
Q4/2010 ending 01/2010
Q1/2011 ending 04/2010
Q2/2011 ending 07/2010
"We continued our momentum during the quarter and have now more than doubled our sales since start-up of RAC Mining LLC and we are on our way to attaining our goal of 12,000 tons per month from the Powhatan surface mine" said Tim Bergen, CEO of CanAm.
CanAm currently owns 49% of RAC Mining LLC and signed a binding Letter of Intent on June 25, 2010 to acquire an additional 49% ownership stake in RAC Mining LLC and certain other assets from Job Land & Mineral Inc. The Company is currently performing its due diligence and working to complete all the required regulatory and other requirements and anticipates closing of this transaction in October 2010.
About CanAm Coal Corp.
CanAm is a coal marketing 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 49% owned Alabama coal mine operations, the exclusive rights to a proprietary Coal to Liquids technology which converts coal into liquid fuels (such as oil, jet fuel) at an economical cost with zero airborne emissions 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.
For Further Information:
Corporate Head Office:
Linden Swensen, President
Toll Free: 1.877.262.5888
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.
Forward Looking Information and Statements
This press release contains certain forward looking statements and forward looking information (collectively referred to herein as "forward looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward looking statements. Forward looking statements are often, but not always, identified by the use of words such as "could", "should", "can", "anticipate", "estimate", "expect", "believe", "will", "may", "project", "budget", "plan", "sustain", "continues", "strategy", "forecast", "potential", "projects", "grow", "take advantage", "well positioned" or similar words suggesting future outcomes. In particular, this press release contains forward looking statements relating to: the future production of the Powhatan mine; the permitting of the Davis mine; and the potential production at the Davis mine. This forward looking information is based on management's estimates considering typical strip mining operations, equipment requirements and availability and typical permitting timelines.
In addition, forward looking statements regarding the Company are based on certain key expectations and assumptions of the Company concerning anticipated financial performance, business prospects, strategies, the sufficiency of budgeted capital expenditures in carrying out planned activities, the availability and cost of services, the ability to obtain financing on acceptable terms, the actual results of exploration projects being equivalent to or better than estimated results in technical reports or prior exploration results, and future costs and expenses being based on historical costs and expenses, adjusted for inflation, all of which are subject to change based on market conditions and potential timing delays. Although management of the Company consider these assumptions to be reasonable based on information currently available to them, these assumptions may prove to be incorrect.
By their very nature, forward looking statements involve inherent risks and uncertainties (both general and specific) and risks that forward looking statements will not be achieved. Undue reliance should not be placed on forward looking statements, as a number of important factors could cause the actual results to differ materially from the Company's beliefs, plans, objectives and expectations, including, among other things: general economic and market factors, including business competition, changes in government regulations or in tax laws; the early stage development of the Company and its projects; general political and social uncertainties; commodity prices; the actual results of current exploration and development or operational activities; changes in project parameters as plans continue to be refined; accidents and other risks inherent in the mining industry; lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting the Company; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; and lack of qualified, skilled labour or loss of key individuals. These factors should not be considered exhaustive. Many of these risk factors are beyond the Company's control and each contributes to the possibility that the forward-looking statements will not occur or that actual results, performance or achievements may differ materially from those expressed or implied by such statements. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these risks, uncertainties and factors are interdependent and management's future course of action depends upon the Company's assessment of all information available at that time.
Forward -looking statements in respect of the future production of the Powhatan mine may be considered a financial outlook. These forward-looking statements were approved by management of the Company on September 20, 2010. The purpose of this information is to provide an operational update on the company's activities and strategies and this information may not be appropriate for other purposes.
The forward looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward looking statements included in this press release are made as of the date of this press release and the Company does not undertake and is not obligated to publicly update such forward looking statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws.
You can view the Next News & Links item: Thu Sep 30, 2010, CanAm Coal Marks Turnaround and Reports First Ever Quarterly Profit
You can view the Previous News & Links item: Mon Sep 20, 2010, CanAm Coal Corp. Announces Warrant Extension
You can return to the main News & Links page, or press the Back button on your browser.