VANCOUVER, Sept. 10 /CNW/ - North American Gem Inc. (TSX-V symbol: NAG)
(The Company) is pleased to announce that it has signed a Memorandum Of
Understanding ("MOU") with Appalachia Coal Corporation ("ACC"), 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
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.
On Behalf of the Board of Directors
NORTH AMERICAN GEM INC.
President and Director
THE TSX VENTURE EXCHANGE HAS NOT YET REVIEWED AND DOES NOT TAKE
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS
This report contains forward looking statements, particularly those
regarding cash flow, capital expenditures, and investment plans. Resource
estimates, unless specifically noted, are considered speculative. The company
has filed a National Instrument 43-101 resource estimate on the Louise Lake
property. Any and all other resource or reserve estimates are historical in
nature, and should not be relied upon. 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
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.
For further information:
For further information: 430-609 Granville Street, Vancouver, BC,
Canada, V7Y 1G5, Phone (604) 683-5445, Facsimile (604) 687-9631,