North American Gem Inc. Receives Mine Permit Approval for North American Gem #3 Mine Subject to Posting of Bond
August 04 2010 - 3:36PM
Marketwired
North American Gem Inc. (NAG) (TSX VENTURE: NAG) through its
subsidiary, North American Gem US, Inc. (NAG US) is preparing to
post the bond for the North American Gem #3 Mine. Once the bond has
been posted the application (Application permit number #861-0502)
to mine will be fully approved by the Kentucky Department of
Natural Resources (KDNR).
Currently the permit application is under American Blue Gem
& Steam Coal, LLC (ABGSC) (agreement signed August 2009). It is
notable that ABGSC will allow NAG US to mine during the permit
transfer process; the only known delay to the commencement of
mining will be the official assignment of the operator, Kentucky
Mine Partners LLC (KMP), which takes approximately 7-10 days. After
the bond has been posted and the assignment of the operator is
complete NAG US will begin mining at the North American Gem #3
Mine.
NAG has also arranged a non-brokered private placement, subject
to the approval of the TSX Venture Exchange, of up to 15,000,000
units at a price of $0.12 per unit for total proceeds of up to
$1,800,000.
Up to 15,000,000 units will be issued as non flow-through units
consisting of one common share and one full warrant. One full
warrant will entitle the holder to purchase one additional common
share of the Company at a price of $0.15 per share during the first
year and at a price of $0.18 per share until expiration in the
second and final year.
The proceeds of the private placement will be used for several
planned cost. Most importantly partial capital will go towards the
posting of the bond on the upcoming North American Gem #3 Mine
(Swan Pond Lease; Application permit number #861-0502). This will
activate the mining permit and allow NAG to begin production using
KMP as the mining operator.
Additional capital will go towards building infrastructure at
the North American Gem #3 Mine site, potential acquisitions and
bonding, additional upgrading for the North American Gem Processing
Facility (Mine Permit #861-8012), building of access roads onto
permitted leases and general working capital.
North American Gem Inc. (TSX VENTURE: NAG) is a junior resource
company in Western Canada. The company's major focus is expanding
its coal mining operations at its flagship properties in Kentucky.
In addition, the company has interests in coal, copper, molybdenum,
and other base metals in Canada.
On Behalf of the Board of Directors
NORTH AMERICAN GEM INC.
Charles Desjardins, President and Director
Cautionary note:
This report contains forward looking statements. Resource
estimates, unless specifically noted, are considered speculative.
Any and all other resource or reserve estimates are historical in
nature, and should not be relied upon. The production rate and
mine-life projections have been made without support of a
feasibility study, there is no certainty the proposed operations
will be economically viable. By their nature, forward looking
statements involve risk and uncertainties because they relate to
events and depend on factors that will or may occur in the future.
Actual results may vary depending upon exploration activities,
industry production, commodity demand and pricing, currency
exchange rates, and, but not limited to, general economic factors.
Cautionary Note to US investors: The U.S. Securities and Exchange
Commission specifically prohibits the use of certain terms, such as
"reserves" unless such figures are based upon actual production or
formation tests and can be shown to be economically and legally
producible under existing economic and operating conditions.
"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."
Contacts: North American Gem Inc. Charles Desjardins President
and Director 604-683-5445 604-687-9631 (FAX)
info@northamericangem.com www.northamericangem.com
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