Atlantic Coal PLC Option Extension (7790P)
October 29 2012 - 10:00AM
UK Regulatory
TIDMATC
RNS Number : 7790P
Atlantic Coal PLC
29 October 2012
Atlantic Coal plc / Index: AIM / Epic: ATC / Sector: Mining
29 October 2012
Atlantic Coal plc ("Atlantic Coal" or the "Company")
Option Extension
Atlantic Coal, the AIM-listed anthracite coal mining company
operating in Pennsylvania, USA, is pleased to announce that,
following the recent update contained in its interim results dated
27 September 2012, it has entered into an agreement to extend the
deadline to exercise the option to acquire additional anthracite
assets in Pennsylvania to 31 March 2013 (the "Option Extension").
Further details of the option agreement are contained in the
Company's announcement on 15 February 2012.
The Option Extension was signed on 25 October 2012. The cash
consideration for the Option Extension is US$75,000 which is
non-refundable and payable immediately but which is to be applied
in part satisfaction of the US$35,000,000 cash consideration
payable to exercise the option should the Company decide to
exercise the option agreement. Apart from extending the option
exercise period, the terms of the option remain largely unchanged,
save that the parties have agreed to potentially vary the
consideration payable to exercise the option should US Federal or
State taxes increase prior to exercise of the option. The option
agreement remains exercisable entirely at the Company's discretion.
As previously announced, the size of the acquisition of the assets
in question would be likely to constitute a reverse transaction
under the AIM Rules for Companies and would therefore, inter alia,
be subject to shareholder approval.
Since entry into the option agreement was announced, the Company
has undertaken significant due diligence on the anthracite mining
assets in question, including the preparation of a Competent
Person's Report, which is in advanced draft form. In addition,
Atlantic Coal has made significant progress regarding legal and
accounting due diligence on the target assets. The Company is also
currently negotiating an off-take agreement for certain of the
target's anthracite assets and is in discussions regarding debt
finance in order to fund or part fund the consideration payable to
exercise the option. Notwithstanding the above, the Company
believes that it will not be in a position to exercise the option
agreement until the first quarter of next year as the due diligence
and funding processes are likely to take some months to complete.
There is also no guarantee that the option will be exercised and
that an acquisition will ultimately be concluded. The Company will
update shareholders as and when appropriate.
**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
Mark Connelly Allenby Capital Limited Tel: 020 3328 5656
Stefan Olivier Cornhill Capital Ltd Tel: 020 7710 9618
Elisabeth Cowell St Brides Media & Finance Tel: 020 7236 1177
Ltd
This information is provided by RNS
The company news service from the London Stock Exchange
END
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