North American Gem Signs MOU to Acquire Appalachia Coal Corp.
North American Gem Inc. announce that it has signed a Memorandum Of Understanding with Appalachia Coal Corporation, a private company with advanced stage coal interests in West Virginia.
ACC currently controls approximately 20,000 acres of coal leases in West Virginia that are in various stages of permitting. Several different coal seams run on ACC’s properties including the well known Kittanning seam currently being mined at Cleveland-Cliff’s White Tail mine 6 miles from ACC’s project. Initial strip mining is anticipated to commence late Q4 2008 – Early Q1 2009. The project is anticipated to host in excess of 100 million tons of coal (this resource is not 43-101 compliant). NAG intends to commence an aggressive drill program shortly after closing.
Under the terms of the MOU, NAG intends to purchase 100% of the outstanding shares in ACC pursuant to a share exchange and other consideration. The closing will occur on or before September 30th 2008 at 5:00 pm PST and is subject to obtaining all necessary consents, approvals and other authorizations of any regulatory authorities, shareholders or third parties.
The management of NAG feels that ACC is an attractive acquisition target on many fronts but in particular for its extensive coal reserves and the ability to potentially generate positive cash flow in the near future.
Speaking from the 47th Canadian Conference on Coal in Calgary Mr. Charles Desjardins, President of North American Gem Inc. said, “The potential acquisition of Appalachia Coal Corp. is one of many excellent coal industry opportunities that have been brought to the Company since its recent involvement in coal exploration. The company is committed to looking at opportunities that will enhance shareholder value.”
Terms of the agreement are as follows:
– The Company has paid $100,000 upon the execution of this MOU to ACC. – Upon closing of this agreement the Company will issue 8,000,000 units, consisting of one (1) common share and one (1) common share purchase warrant exercisable at an exercise price of $0.20 per share for a period of two (2) years from closing, to ACC. – In addition the Company will pay $200,000 to the founder upon closing of this agreement.
– A finders fee will be payable on this transaction in accordance with TSX Venture Exchange policy.
Terms of the agreement are subject to TSX Venture Exchange approval.
About North American Gem Inc. North American Gem Inc. (TSX-V symbol: NAG) is a junior exploration Company based in Western Canada. The Company’s primary goal is to explore for Uranium, Molybdenum, Gold, Copper, and other base metals in Canada. The Company is actively pursuing several opportunities, including the Louise Lake copper-gold-molybdenum-silver project located in British Columbia. The Company is also pursuing its uranium projects, consisting of the Whiskey Gap, Del Bonita, Western Basin, and Bonny Fault projects, all located in Alberta. In addition the Company is also pursuing its Mosquito Gulch uranium property located in the North West Territories and the Ranger Lake Uranium property located in Ontario.
