TIDMATC

RNS Number : 6266U

Atlantic Coal PLC

02 January 2013

Atlantic Coal plc / Index: AIM / Epic: ATC / Sector: Mining

2 January 2013

Atlantic Coal plc ("Atlantic Coal" or the "Company")

Loan extensions

Atlantic Coal, the AIM-listed anthracite coal mining company operating in Pennsylvania, USA, announces the extension and variation of the existing loans between Coal Contractors (1991), Inc. ("Coal Contractors"), a wholly owned subsidiary of the Company, and: i) Willoughby (465) Limited ("Willoughby"); and ii) Mrs MC Best (the "Loan Extensions").

Since 17 October 2007, Coal Contractors has had loans from Mrs MC Best (the wife of Steve Best, Chief Executive of Atlantic Coal) and Willoughby (a company controlled by Mrs MC Best). As at 31 December 2012 the total outstanding (being principal and accrued interest) on the loan from Mrs MC Best was $1,971,466.32 and the total outstanding (being principal and accrued interest) on the loan from Willoughby was GBP477,020.73 (together the "Existing Loans"). Interest on the Existing Loans has been accruing at 9% per annum. The Existing Loans are currently unsecured and were repayable in full (together with all accrued interest) on 31 December 2012.

On the terms of two loan extension and variation agreements entered into on 1 January 2013 between Coal Contractors, Mrs MC Best and Willoughby respectively, repayment of the Existing Loans have been extended to 30 April 2013. In consideration of these repayment extensions, the interest rate on the Existing Loans has been increased to 15% per annum with effect from 1 January 2013 until the date on which the Existing Loans are repaid in full. The terms of the Existing Loans otherwise remain unchanged. In addition Coal Contractors has agreed to repay $221,466.32 of the loan from Mrs MC Best on 2 January 2013, leaving the outstanding principal and accrued interest on the loan from Mrs MC Best as $1,750,000.00.

Related party transaction

As Mrs MC Best is the wife of Steve Best, Chief Executive of the Company and Willoughby is a company controlled by Mrs MC Best, the Loan Extensions are related party transactions as defined under Rule 13 of the AIM Rules for Companies. Accordingly, the Atlantic Coal Board of Directors (with the exception of Steve Best), being the independent directors for this purpose, having consulted with the Company's nominated adviser, Allenby Capital Limited, consider that the terms of the Loan Extensions are fair and reasonable insofar as shareholders of Atlantic Coal are concerned.

**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 
 Alex Price         Allenby Capital Limited     Tel: 020 3328 5656 
 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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