The firm said it was in a strong position to build on its portfolio in Pennsylvania, as it unveiled its results for the year to December 31, 2011.

In the 12 months, the firm saw increased production and sales from its Stockton colliery - with 207,005 tons of run-of mine coal unearthed and sales reaching 106,403 tons.

Revenues were strengthened to US$13.9 million compared to US$10.7 mln IN 2010.

The company said it reduced its group loss to US$3.15 million from a loss of US$5.09 mln in 2010.

The highlights of the current year include completion of the railroad diversion providing access to around 1.0 million tons of previously unworkable coal and a 12 per cent increase in production at Stockton and 24 per cent increase in average sales price experienced in the first quarter this year.

In January this year, it announced a lease option agreement with Pennsylvania-based Reading Anthracite Company which holds a permitted 410 acre anthracite mining property, believed to contain 4.1 million tons of clean coal.

In February, the company entered another option to acquire anthracite mining assets for a purchase price of US$35 million.

Atlantic Coal (LON:ATC) today said it had taken out an option on a second anthracite coal property in Pennsylvania, which could cost it US$35 million.

Because of the size of the potential deal it would amount to a reverse takeover and would require shareholder approval.

Atlantic said it had not yet started due diligence, which would take a number of months to complete.

There was no guarantee it would conclude a deal, it added. The option expires on 31 October.

Steve Best, Atlantic’s managing director, had said previously that its strategy was to expand in Pennsylvania and to build the company into a major US anthracite producer. 

Last month, Atlantic started due diligence on the 410 acre Pott & Bannon anthracite mining property also situated in Pennsylvania and where it also has an option to buy.

The Pott & Bannon property is situated in New Castle Township, Schuylkill County and about 25 miles from Atlantic’s existing open cast operation at Stockton.

It is estimated to contain reserves of 12 million tons Run of Mine at 3.9 ratio with 4.1 million tons of clean coal.

If it takes up its option, Atlantic will pay current owner Reading Anthracite (RAC) US$6 million in cash and shares for the property along with the grant of US$3 million in warrants to RAC.

Anthracite is the highest quality coal and used in steel making and power generation.

Atlantic will now pay US$250,000 to RAC with a further US250,000 to be held in escrow while it carries out due diligence on the property. 

If it takes up its option, Atlantic will pay US$6 million in cash and shares for the property along with the grant of US$3 million in warrants to RAC.

The Pott & Bannon property is situated in New Castle Township, Schuylkill County and about 25 miles from Atlantic’s existing open cast operation at Stockton.

It is estimated to contain reserves of 12 million tons Run of Mine at 3.9 ratio with 4.1 million tons of clean coal.

Atlantic has appointed John T. Boyd & Company to carry out due diligence and confirm the resource information provided, adding it intends to submit the permit transfer application shortly.

Last week, when the deal was announced, Atlantic’s managing director Steve Best said that taking the lease option was part of its strategy to expand in Pennsylvania and to build Atlantic Coal into a major anthracite producer in the US. 

Under the terms of the lease, RAC can buy all of the raw coal produced at the prospect until Atlantic makes a decision on whether to build a processing plant and up to 50% thereafter.

It says assuming both that the lease option is ratified by the board of the site's owner Reading Anthracite Company (RAC) and that due diligence is completed successfully, Atlantic has the potential to double its current rate of anthracite production and at a favourable strip ratio.

Atlantic announced this morning it had signed an option on the permitted site, which is 25 miles from its existing open pit coal mine at Stockton and also contains the same Mammoth Seam.

Atlantic estimates the new site, known as the Pott & Bannon anthracite mining property in Schuylkill County, contains 12 million tons of Run of Mine coal at a 3.9 ratio with 4.1 million tons of clean coal.

Subject to due diligence, Atlantic will pay US$6 million in cash and shares to RAC and grant it US$3 million worth of warrants at 0.75 pence per share.

Atlantic said that as well as developing its strategy of increasing its current reserves and production profile in the Pennsylvania Anthracitic Belt, it will allow it to build a commercial relationship with RAC, a firm that has been operating in the Pennsylvania area for 135 years.

The site is also in close proximity to major east-coast transportation hubs, it added.

Steve Best, Atlantic Coal's managing director, said: "We are extremely pleased to have been able to secure an option on this major site.  This agreement is in line with our growth strategy of expanding our regional footprint in this prime anthracite region, which has excellent infrastructure and established demand, and building Atlantic Coal into a major anthracite producer in the US.

Under the terms of the lease, RAC can buy all of the raw coal produced at the prospect until Atlantic builds a processing plant and up to 50% thereafter.

The $2.7 million cash component of the consideration will be sourced from Atlantic’s existing cash resources.

The lease will run for an initial period of 10 years and Atlantic will have the opportunity of extending the lease on the new site once it expires for two additional periods of 5 years each. 

Atlantic added it will try to achieve a minimum rate of production of 400,000t of run of mine coal in the second year of the lease. 

Its current operation at Stockton is an open pit colliery that sells mainly into the local central heating market and has reserves of 3.1 million tonnes of run-of-mine anthracitic coal, equating approximately to 1.5 million tonnes of washed anthracite after processing. 

The firm’s current target is to produce 300,000t of run-of-mine coal in 2011 after it reported a 65 per cent increase in the production of run-of-mine coal to 121,000t the first half of the year.

Shares were up 6% at 0.472p. Fox-Davies is Atlantic’s house broker.

US-focused coal miner Atlantic Coal (LON:ATC) has signed an option on a prospect in Pennsylvania that could double its anthracite reserves.

The lease option with Pennsylvania-based Reading Anthracite Company (RAC) is for a permitted 410 acre site 25 miles from Atlantic’s Stockton site and which also contains the Mammoth Seam that is being mined at Stockton. 

Atlantic estimates the new site contains 12 million tons of Run of Mine coal with 4.1 million tons of clean coal.

Subject to due diligence, Atlantic will pay US$6 million in cash and shares to RAC and grant it US$3 million worth of warrants at 0.75 pence per share.

Atlantic said that as well as developing its strategy of increasing its current reserves and production profile in the Pennsylvania Anthracitic Belt, the deal also has the potential to build a commercial relationship with RAC, which has been operating in the area for 135 years.

The site is also in close proximity to major east-coast transportation hubs, it added.

Steve Best, Atlantic Coal's managing director, said: "We are extremely pleased to have been able to secure an option on this major site.  This agreement is in line with our growth strategy of expanding our regional footprint in this prime anthracite region, which has excellent infrastructure and established demand, and building Atlantic Coal into a major anthracite producer in the USA.

Under the terms of the lease, RAC can buy all of the raw coal produced at the prospect until Atlantic builds a processing plant and up to 50% thereafter.

Pennsylvania-focused coal miner Atlantic Coal (LON:ATC) announced this morning that its shares are to be admitted to trading on the OTCQX ‘Pink Sheets’ platform in New York.

While the entire ordinary share capital of Atlantic will continue to trade on the Alternative Investment Market in London, a recently-established American Depositary Receipt (ADR) facility – for which BNY Mellon is acting as ‘depositary bank’ – will enable US investors to trade the firm’s shares.

Atlantic’s management team believes that the quotation on the OTCQX will benefit existing shareholders by making its shares more accessible to US investors, as well as providing the firm with increased visibility in the country where its primary asset is located.

Recently, Atlantic reported that revenues from its Stockton Colliery in Pennsylvania increased during the six months to the end of June by 55 per cent to US$7.5 million.

“We are delighted to have an ADR programme and to be quoted on OTCQX market today which is a key milestone for Atlantic in building market awareness in the company and expanding its shareholder base,” said Atlantic’s managing director, Steve Best.

“We already have a strong presence in the prime anthracite coal field through the Stockton Colliery, which has a current reserve of 3.1 million tons of run of mine anthracitic coal and we are committed to increasing this, in what is a prime anthracite coal field.  In line with this we have been evaluating various assets and the board believes that quotation on OTCQX will assist and strengthen our position in this regard."