KNOXVILLE, Tenn., May 10, 2010 (BUSINESS WIRE) -- Americas Energy Company-AECo (OTCBB: AENY) is moving aggressively to expand mining operations to meet sales demands.
Americas Energy Company has achieved several developmental milestones in a very short time. We began initial mining operations on leases we acquired from Evans Coal Company and RJCC Group 1 in November of 2009 and by the period ended December 31, 2009 had generated coals sales through mining operations of approximately $990,000 (Unaudited Pro Forma Condensed Financial Statements filed February 18, 2010 on Form 10-Q).
On January 21, 2010 we merged with Trend Technology Corporation. Through the reverse merger we became a public company and pursuant to the merger agreement we completed $2,000,000 in financing.
On March 31, 2010 we completed our acquisition of Evans Coal Company, a 36-year-old mining company based in Flat Lick, Kentucky. Evans Coal Company's assets contain high quality coal reserves in Southeastern, Kentucky. The Purchase price was $32,000,000 consisting of $7,000,000 which was paid in full in cash and a promissory note for $25,000,000 subject to two permitting contingencies.
On April 1, 2010 we were granted a mine permit for the Artemus Surface and Deep Mines. The permit encompasses more than 695 acres in Knox County, Kentucky. The Artemus Permit includes five surface permit areas and three deep mine permits.
This permit grant cleared a $10,000,000 contingency to the purchase price of Evans Coal Company. If permits are not obtained on the "Breathitt" project by December 31, 2016, then the purchase price will be reduced by $5,000,000. We now operate Evans Coal Corporation as a wholly owned subsidiary of Americas Energy Company-AECo.
On April 15, 2010 we began Coal mining operations on the Artemus Permit which we anticipate will result in greatly expanded Coal production capacity allowing us to meet our growing sales demands.
"For the three month period ended March 31, 2010, we were able to further develop our initial properties to provide approximately $1.6 million (unaudited) in sales from those mining operations. Our total sales of Coal for that period exceeded $2.5 million (unaudited) inclusive of Coal purchased to meet sales demand. The expansion of operations on our active properties and the addition of the Artemus permitted areas will allow us to increase our production capacities to meet our increasing sales demands," said Chris Headrick, President and CEO of Americas Energy Company. Mr. Headrick added, "I am proud of what my team has accomplished in such a short time. In a six month period we have received a total of $9,000,000 in financing, purchased Evans Coal Company on very favorable terms, mined and sold over $2.5 million dollars (unaudited) in Coal on total Coal sales of about $3.4 million (unaudited) and positioned the company for greatly expanded mining capacity moving forward with the recent addition of the Artemus permitted areas." On April 30, 2010, we purchased an office space of approximately 6,500 square feet in preparation for the increase demand for personnel that the Artemus Project and the 92 Highway Project will ultimately bring to the Company.
On May 7, 2010 we welcomed additional members to enable us to expand our Corporate Governance to include an independent Audit, Compensation and Nomination Committees which are integral to our growing company.
We anticipate filing additional financial disclosure related to the Evans Coal Company purchase very soon and are putting forward every effort to make an early filing of our Annual Report for the year ended March 31, 2010. We intend to hold a shareholders' meeting as soon as practical thereafter and expand our Board of Directors further.
About Americas Energy Company We are a consolidator of high quality energy properties, operating out of our main offices in Knoxville, TN. We currently operate projects in both Kentucky and Tennessee. AECo develops energy projects throughout the Americas.
AENY encourages those interested in our company to rely only on information expressly approved and released by the Company including our filings with the United States Securities and Exchange Commission which can be found at www.sec.gov.
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: This press release contains certain "forward-looking statements" as defined in the United States Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and the actual results and future events could differ materially from management's current expectations. Factors that could cause or contribute to such differences include, but are not limited to, contractual difficulties that may arise, the failure to obtain necessary approvals, the future market price of AENY common stock and the ability to obtain any necessary financing. Such factors are detailed from time to time in AENY's filings with the United States Securities and Exchange Commission and other regulatory authorities.
SOURCE: Americas Energy Company CONTACT: Americas Energy Company Christopher Headrick, 865-238-0668 x 105 firstname.lastname@example.org www.americasenergycompany.com Copyright Business Wire 2010 -0- KEYWORD: United States
Tennessee INDUSTRY KEYWORD: Energy