The company said December 21 that, should it put its acquisition of another still-unidentified Pennsylvania anthracite miner into motion, it could sizably increase its reserve portfolio. It has projected the transaction to be worth about $25 million and said it will be classified as a reverse takeover under AIM outlines.
Atlantic currently operates one U.S. complex, the Stockton operation in the anthracite region of eastern Pennsylvania.
“For Atlantic Coal to continue operations with only one active mine is not in the company’s best interests,” officials said. “Atlantic Coal will therefore need to acquire significant new anthracite mining assets in order to generate value for shareholders.”
Post-close of the proposed deal, the resulting combined company would have an aggregate reserve of 9 million tons of anthracite and operate three mines and two primary processing plants along with a secondary processing plant.
Shareholders will need to approve the listing cancellation as well as the company’s subsequent name change to Atlantic Carbon Group. That general meeting is scheduled for January 11.
