Atlantic Coal ATC.L Remain on Track for Expansion

Atlantic Coal reveals extension to option of further assets in Pennsylvania

Atlantic Coal (LON:ATC) now has until the end of March next year to exercise an option on a second anthracite coal property in Pennsylvania.

The original deal, announced in February this year, had a deadline of October 31, but this option has now been extended until March 31 next year, it said.

The cash consideration to extend the option is US$75,000 which is non-refundable and payable immediately but will be applied in part satisfaction of the US$35 million cash consideration payable to exercise the option, it said.

Atlantic coal has carried out significant due diligence on the anthracite mining assets in question, including preparing a competent person's report, which it says is in "advanced draft form".

In February, the company said that because of the size of the potential deal it would amount to a reverse takeover and would require shareholder approval.

Steve Best, Atlantic’s managing director, has said that the firm's strategy was to expand in Pennsylvania and to build the company into a major US anthracite producer.

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