The company will be issuing 13 million units at 8c a unit.

Each unit consists of one common share and one common share purchase warrant.

Each warrant is exercisable at 12c per common share for a period of one year from closing.

The common shares issued in connection with the offering are subject to a four-month hold period that expires on October 21.

Finder’s fees of 6% were paid and 8% finder’s warrants were issued in connection with a portion of the private placement.

The finder’s warrants are exercisable into common shares at a price of 8.5c apiece for a period of one year from closing.

Proceeds from the placement will be used to execute CanAm’s development and acquisition plans, repay outstanding debts, and for general operating purposes.

CanAm president and chief executive officer Jos De Smedt said the private placement would let the company execute its business plan and provided it with additional financial flexibility.

The Toronto Stock Exchange-listed company’s main activities and assets include its four operating coal mines in Alabama and the Buick Coal Project.

Buick, in Colorado, holds 188 million tons of indicated resources and 103Mt of inferred resources.