CanAm Coal Corp. announced that it has entered into operating facilities totaling $3 million with a major US Bank. These 1 year revolving loan facilities bear an interest rate of Libor + 3%, which currently approximates 3.2%.

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.