Atlantic Coal (LON:ATC) is in negotiations to extend the deadline on its option agreement to acquire additional anthracite mining assets in Pennsylvania.
The option, which is exercisable entirely at the company's discretion, has an exercise price of US$35 million.
Technically, the exercise period ended on 31 March 2013 but due diligence and funding discussions were in progress at the time the option expired, hence the discussions over an extension to the option exercise period.
The company anticipates that the discussions with the vendor will be concluded shortly and notes that there can be no certainty that the vendor will agree an option extension or that such an extension will be on acceptable terms to the company.
Atlantic Coal noted that the acquisition of the assets in question would be likely to constitute a reverse takeover under the AIM rules for companies and thus would require shareholder approval.