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Atlantic Coal signs option on new US anthracite site

Tue, 03rd Jan 2012 09:00

US focused aim listed miner Atlantic Coal rallied after it signed an option on a new US anthracite property that could more than double its anthracite reserves.The lease option with Pennsylvania based Reading Anthracite is for a permitted 410 acre site in the Pennsylvanian Anthracitic Belt, 25 miles from where the group's existing Stockton Colliery is currently producing. Managing director Steve Best said, "We are extremely pleased to have been able to secure an option on this major site. This agreement is in line with our growth strategy of expanding our regional footprint in this prime anthracite region, which has excellent infrastructure and established demand, and building Atlantic Coal into a major anthracite producer in the USA."Atlantic estimates that the site contains reserves of 12m tons Run of Mine with 4.1m tons of clean coal, which means the group could potentially more than double existing anthracite reserves. Atlantic Coal's average sales price during November 2011 of anthracite in Pennsylvania was around $156 per ton.Atlantic will pay $6m in cash and shares to RAC, subject to due diligence, and grant it $3m worth of warrants at 0.75p per share.The group also said there is strong potential for building a commercial relationship with RAC, a US anthracite company.--cj
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Atlantic Coal shares slide after option update

Shares in AIM-listed listed anthracite coal mining company Atlantic Coal slid slightly on Tuesday, the same day that the company announced an update in relation to an option agreement to acquire additional anthracite mining assets in Pennsylvania. The option - which is exercisable at the company's

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21 Jan 2013 09:17

Atlantic Coal exercises option over mining site in Pennsylvania

Atlantic Coal, an AIM-listed coal production company, has exercised its lease option over the fully permitted 410 acre Pott & Bannon anthracite mining property in Pennsylvania, US. As such, the group will pay $6.0m in cash, coal and shares to Reading Anthracite Company, in addition to warrants ove

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