London-listed Atlantic Coal plc, which mines anthracite coal in Pennsylvania, confirmed Feb. 15 press reports that it is close to acquiring new anthracite reserves.
The company said it has entered into an option agreement to acquire anthracite mining assets in Pennsylvania. The option, which is exercisable entirely at the company’s discretion, has an exercise price of $35m and the exercise period ends on Oct. 31. Due to the size of the exercise price, the acquisition of the assets in question would be likely to constitute a reverse transaction under the AIM Rules for companies and would therefore be subject to shareholder approval. AIM is the London Stock Exchange’s international market for smaller growing companies.
But, the company warned that it has yet to commence an in-depth due diligence process for this buy, which is likely to take a number of months to complete. There is also no guarantee that the option will be exercised and that an acquisition will ultimately be concluded.
Atlantic Coal operates in Pennsylvania under subsidiary Coal Contractors (1991) Inc., which has three operations currently registered with the U.S. Mine Safety and Health Administration. They are the Stockton prep plant in Luzerne County, and the Stockton and Gowen strip mines. Gowen is currently listed by MSHA as “nonproducing” and last produced coal in 2001. The Stockton mine is active and produced 100,943 tons in 2011 and 88,278 tons in 2010.