CanAm Coal Corp. announced that is has refinanced substantially all of its equipment loans and secured an additional $3 million financing package with a major US Bank. The Company, through its subsidiary Birmingham Coal & Coke Co Inc., has agreed with its US banking partner to amend its existing equipment financing agreement.

The main changes are to increase the principal amount of the loan by $3 million (with a term of 54 months) and to reset the amortization period for the outstanding amount of the original loan ($13.2 million outstanding at April 2014) to 48 months. The blended interest rate on the facility is 4.04%. Included in the revised agreement is a new covenant requiring the Company to convert at least $6,500,000 of its 2012, 9.5% debenture to equity prior to July 31, 2014.

This represents approximately 50% of the face value of the debenture. The debenture matures in August 2016.