11 Aug 2009 12:30
Atlantic Coal plc / Index: AIM / Epic: ATC / Sector: Mining
11 August 2009
Atlantic Coal plc
('Atlantic' or 'the Company')
Re - Acquisition of Interest in Strategic Natural Resources plc
Atlantic Coal plc, the AIM listed open cast coal production and processing company with activities in Pennsylvania, USA, notes the RNS announcement released by Strategic Natural Resources plc ('SNR') on the 11th August regarding Atlantic's acquisition of 9.99% of SNR's issued share capital, for cash at 8.25p per share.
Although no discussions have taken place with SNR, Atlantic's board would like to clarify that it has in fact made two indicative offers for the entire issued share capital of SNR in writing on the 24th and 30th July both of which have been rejected in writing on the basis that SNR's board desires an all cash offer.
The board of Atlantic continues to consider its position.
Atlantic Coal Chairman Adam Wilson said, "Prior to the acquisition of our stake in SNR, we made two indicative offers to SNR which were both rejected. We identified the Elitheni project, which boasts a quality resource in an area with a growing demand for coal, as a project with potential, and SNR as a company that was significantly undervalued compared to its peers. We believe that this is an ideal time to acquire strategic stakes in coal projects to expand our current US focused portfolio and as a result we are still evaluating our position and will update the market in due course. Additionally the Board will continue to evaluate other opportunities in the coal sector which it believes have the potential to generate further value for its shareholders, as it believes that at this time, the possibilities for consolidation in the sector are significant."
**ENDS**
For further information on the Company, visit: www.atlanticcoal.com or contact:
| Stephen Best | Atlantic Coal plc | Tel: 020 7182 1747 |
| Greg Kuenzel | Atlantic Coal plc | Tel: 020 7182 1747 |
| Imran Ahmad | HB Corporate Limited | Tel: 020 7510 8600 |
| Nick Athanas | HB Corporate Limited | Tel: 020 7510 8600 |
| Daniel Fox Davies | Fox Davies Capital Ltd | Tel: 020 7936 5230 |
| Hugo de Salis | St Brides Media & Finance Ltd | Tel: 020 7236 1177 |
| Chris Welsh | St Brides Media & Finance Ltd | Tel: 020 7236 1177 |
About the Company:
Atlantic Coal owns and operates the Stockton Colliery which comprises an opencast anthracite mine and an adjacent anthracite washing plant. The mine is an established non-union surface mine encompassing circa 900 land acres in the Hazle Creek Valley, Pennsylvania and has an estimated proven reserve of 4 million tons. Mining of raw coal is from the high quality mammoth seam, while washing and sizing takes place in the 150 ton per hour coal preparation plant. J T Boyd Company, the Company's Competent Person, estimated that there is over 10 years of mine life from existing reserves at an average production rate of 400,000 Run of Mine ('ROM') tons per annum. Based on historic production levels, the mine is capable of and is projected to produce approximately 450,000 ROM tons of coal per year. Mining operations are conducted by the use of hydraulic excavators. Uncovered raw coal is then loaded into 100 ton trucks for delivery to the onsite preparation plant. As each section of the mine is developed, mining progresses from the northern and southern faces into the basin. This yields a constant flow of raw coal to the preparation plant.