Canada-based CanAm Coal reworks mine equipment financing

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.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.