Update re. Anthracite Property in Pennsylvania (1057I)
June 08 2011 - 10:10AM
UK Regulatory
TIDMATC
RNS Number : 1057I
Atlantic Coal PLC
08 June 2011
Atlantic Coal plc / Index: AIM / Epic: ATC / Sector: Mining
8 June 2011
Atlantic Coal plc ("Atlantic" or the "Company")
Update re. Anthracite Property in Pennsylvania
Atlantic Coal plc, the AIM listed open cast coal production and
processing company with activities in Pennsylvania, USA, announces
that following completion of a comprehensive due diligence
programme, the Board has decided not to pursue its option to buy a
158 acre anthracite mining property located in the Boroughs of
Duryea and Hughestown in Luzerne County, Pennsylvania (the
"Asset"). Further details of the Asset are contained in the
announcement made by the Company on 14 March 2011. Accordingly, the
US$700,000, which has been held in escrow by the Pennsylvania
Bankruptcy Court since the option was secured, has been returned to
the Company in line with the terms of the order.
Atlantic remains committed to its growth strategy of acting as a
regional consolidator to extend its resource base in Pennsylvania
where the Company has increased production capacity at its primary
asset, the Stockton Colliery ("Stockton").
Atlantic Managing Director Steve Best said, "We have a stringent
evaluation procedure in place to ensure that we find the right
projects to fit our investment criteria. Initially the Asset looked
promising but following due diligence, a number of issues arose,
which led to our decision not to proceed any further with the Asset
and to take refund of our US$700,000 deposit.
"We raised GBP12.0 million on the back of our aggressive
strategy to act as a regional consolidator in the Pennsylvanian
Coal Fields, and this transaction is one of many that we have been
evaluating. Going forward, we are confident that we have the right
team and a healthy balance sheet in place to build a significant
multi-project operation and look forward to announcing further
developments at the appropriate time."
**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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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