Option to Acquire Anthracite Property (8393C)
March 14 2011 - 3:00AM
UK Regulatory
TIDMATC
RNS Number : 8393C
Atlantic Coal PLC
14 March 2011
Atlantic Coal plc / Index: AIM / Epic: ATC / Sector: Mining
Atlantic Coal plc ("Atlantic" or the "Company")
Option to Acquire Anthracite Property in Pennsylvania
Atlantic Coal plc, the AIM listed open cast coal production and
processing company with activities in Pennsylvania, USA, is pleased
to announce that it has secured an option to buy a 158 acre
anthracite mining property located in the Boroughs of Duryea and
Hughestown in Luzerne County, Pennsylvania (the "Asset").
Based on information provided to the Company, the Directors
believe that the Asset could consist of up to 12,000,000 tons of
colliery spoil, estimated to contain 10-15% of recoverable sized
coal and in excess of 1,000,000 tons of coal silt on surface, as
well as approximately 2,500,000 tons of subsurface coal reserves
recoverable by opencast mining. These resource details have not yet
been reviewed by a qualified person (within the meaning of the AIM
Rules for Companies) and this review will form part of Atlantic's
due diligence on the Asset. There can be no guarantee that the
qualified person's report will confirm these numbers and further
announcements will be made in this regard at the appropriate time,
within the next three months.
The Asset is part of the Bankruptcy Estate of Kenneth J.
Nowakowski which is pending before the US Bankruptcy Court for the
Middle District of Pennsylvania. The Board believes that by
utilising its knowledge of anthracite mining and processing, and
applying adequate unleveraged investment, the Asset has the
potential to complement its existing operations at the Company's
Stockton Mine and add value to the Company going forward.
Under the terms of the order granted on 8 March 2011 by the
Pennsylvania Bankruptcy Court, Atlantic has committed US$700,000 to
be held in escrow for a 90 day period, during which the Company
will complete its due diligence investigation. At the conclusion of
the 90 days, Atlantic has the option to purchase the Asset by
releasing the escrow funds to the Court and funding additional
acquisition costs (to be determined following the results of
Atlantic's due diligence process but which will not to exceed
US$1,200,000) or having the escrow funds returned. Atlantic's
decision on whether to exercise the option is subject to the
results of its due diligence into the Asset and, as such, there can
be no guarantee that it will do so.
Atlantic Managing Director Steve Best said, "We have been
actively looking to expand our portfolio in the Pennsylvanian
Anthracite Field, where our Stockton mine is located, and we
believe this asset, with the right investment, has the potential to
add value going forward as it could significantly increase our coal
resources. We recently completed a pivotal fund raising of GBP12.0
million which has provided us with the finance required to execute
our growth strategy through acting as a regional consolidator to
extend our resource base and increasing production at Stockton. In
line with this strategy, we continue to evaluate further
acquisition targets and look forward to updating shareholders in
due course."
**ENDS**
For further information on the Company, visit:
www.atlanticcoal.com or contact:
Steve Best Atlantic Coal plc Tel: 020 3328 5670
Nick Naylor Allenby Capital Limited Tel: 020 3328 5656
Alex Price Allenby Capital Limited Tel: 020 3328 5656
Peter Rose FoxDavies Tel: 020 3463 5030
Simon Leathers FoxDavies Tel: 020 3463 5010
Hugo de Salis St Brides Media & Finance Tel: 020 7236 1177
Ltd
Elisabeth Cowell St Brides Media & Finance Tel: 020 7236 1177
Ltd
Notes
Atlantic Coal Plc is an AIM listed coal production and
processing company focussed predominantly on open cast mining and
the processing of anthracite coal in Pennsylvania, USA. The
Company's primary asset is the Stockton Colliery, a producing
surface coal mine and adjacent anthracite preparation plant
encompassing an area of approximately 900 hectares located in Hazel
Creek in North-East Pennsylvania, which has current Proven Reserves
of 4.2 million tons run-of-mine coal.
Atlantic Coal's strategy is to create a significant mid-tier
coal company; both through the expansion of activities at the
Stockton anthracite mine and identifying additional sites in
Pennsylvania to build its production and resource profile,
primarily by acquiring defined assets in stable, recognised, high
quality coal regions. The Board has identified opportunities to
expand within the region and is involved in ongoing negotiations
regarding adjacent sites, with the intention of acting as a
regional consolidator in the Pennsylvanian Coal Field. Expansion
within the local area has the potential to minimise upfront deal
costs as a result of existing and proven infrastructure, equipment,
facilities and market demand.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCLLFVDVRILLIL
Atlantic Coal (LSE:ATC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Atlantic Coal (LSE:ATC)
Historical Stock Chart
From Jul 2023 to Jul 2024