Atlantic Coal: US$35mn option on second PA project
AIM-listed open cast coal producer and processor Atlantic Coal Plc. (LON:ATC) (“Atlantic”) announced Wednesday
that it will option a second anthracite coal property in Pennsylvania for a grand sum of US$35 million.
The company publically states that given the size of the deal tabled, it effectively amounts to a reverse takeover and as such requires shareholder approval. The company stresses that the deal is by no means absolute—Atlantic is yet to conduct due
diligence on the property, which will run for a number of months—and the company says that the option announced will
expire on 31 October.
Estimated to contain reserves of 12 million tons Run of Mine (ROM) at a 3.9 strip ratio with 4.1 million tons of clean coal,
the 410 acre Pott & Bannon property is situated in New Castle Township, Schuylkill County. It is approximately 25 miles
away from Atlantic’s flagship Stockton Colliery—an opencast anthracite mining and processing operation in the
Pennsylvania Coal Field.
The news sent shares in Atlantic up 5.1 per cent in mid-morning London trading, valuing the company at £15.28 million.
