CanAm Coal Corp. (TSXV: COE) (OTCQX: COECF), which has coal mining operations in Alabama, said July 6 that it has refinanced substantially all of its mining equipment loans with a major U.S. bank.
The company and its affiliates – Birmingham Coal & Coke, Cahaba Contracting & Reclamation LLC and RAC Mining LLC – operate a 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$15.6m of equipment debt over a term of 54 months at an annual interest rate of 3.25%. This arrangement will reduce annual loan payments by about US$800,000 and lower annual interest charges by around US$200,000. The equipment facility is securitized by the underlying equipment.
“This represents another major milestone for our Company,” said CanAm President and COO Jos De Smedt. “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.”
Canada-based CanAm is a coal producer 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 four operating coal mines in Alabama and the Buick Coal Project, which is an undeveloped lignite coal reserve in Colorado.