VANCOUVER (CP) -- The pricetag of the deal, announced Wednesday, is $300,000 in cash and 8 million shares worth 20 cents each - a total of $1.9 million.
Appalachia currently controls about 8,000 hectares of coal leases in West Virginia that are in various stages of permitting, the Vancouver company said.
The acquisition is slated to close by the end of the month.
Charles Desjardins, president of North American Gem, said the acquisition reflects the company's move to expand beyond its traditional gold, copper, molybdenum and uranium exploration.
"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," he said in a release.
"The company is committed to looking at opportunities that will enhance shareholder value."
North American Gem is developing the Louise Lake copper-gold-molybdenum-silver project in British Columbia as well as the Whiskey Gap, Del Bonita, Western Basin, and Bonny Fault uranium projects in Alberta.
The company also is exploring for uranium in Ontario and the Northwest Territories.
In trading Wednesday on the TSX Venture Exchange, North American Gem shares rose half a cent to 20 cents.
(c) Canadian Press