CanAm Coal Corp. (TSXV:COE, OTCQX:COECF) announced that it has an agreement an operating facility with a major US Bank worth $3 million.
As quoted in the press release:
The facilities will be used for issuing letters of credit pertaining to the Company’s reclamation bonding program as well as for general operating purposes. In addition, the Company’s bonding agency has agreed to accept letters of credit for the majority of bonds issued by the Company thereby substantially eliminating the requirement for the Company to maintain cash collateral.
CanAm Coal’s CFO, Scott Bolton, said:
This is further evidence that we are establishing ourselves as an emerging coal producer with a sustainable and profitable business model.