These coal properties are located adjacent to the Old Union Mine and form part of the Old Union 2 mine complex that is currently being permitted, the company noted.
CanAm Coal CEO Tim Bergen said the acquisition of additional coal leases that are within or adjacent to the current mines is an integral part of the company’s growth story.
"In addition, we believe that these lands hold good quality coals that fit well within our product portfolio and are in demand by our customers," Bergen added.
The first of the fee simple mining rights for five rights, acquired in Alabama, spans 324 acres of which the state describes 214.49 acres as mineable, with the estimated recoverable reserve quantity at 401,525.28 tons of coal.
The second property is referred by the company as the Baccus property and covers 170 acres in total with a management estimate of 121 minable acres.
The lease has been agreed for an indefinite term until the mining and reclamation works are completed.
The third property is another state lease for 80 acres with 28 acres of minable land and for a term of five years.
CanAm Coal said all the leases have been partially permitted by BCC prior to the acquisition of the fee simple mining rights and the coal on each of these permits is considered to have the same characteristics as that currently mined from the Old Union mine.
The proximate analysis has revealed an average estimate of 9% ash, 1% sulfur and 12,400 BTU/lb which are consistent with the assays reported from drilling, mine face sampling and product deliveries.
