Canadian anthracite developer, Atrum Coal, has entered into an agreement to purchase a 26.68% interest in Atlantic Carbon Group (ACG), an anthracite mining company with operations in Pennsylvania, US.
Atrum Coal will make cash payments totalling US$4.13 million, as well as a number of Atrum shares equal to US$3 million.
“We are very excited by the possibilities offered through the acquisition of a significant stake in ACG,” said Bob Bell, Executive Chairman of Atrum.
“With the high quality of the sized products ACG produces and direct access to two under-utilised deep-sea ports, we are confident of helping ACG open up new export markets for ultra-grade anthracite,” Bell continued.
“The proposed transaction provides Atrum exposure to undersupplied markets in Europe and Asia, assisting to build the Atrum brand and strengthen relationship with key international offtake customers.”
ACG operations mines and processing plants near to the town of Hazleton, Pennsylvania, including the Stockton mine, the top anthracite ming in the US. ACG also recently acquired the nearby Hazleton shaft and Jeansville mines.
Atrum has began financial and legal due diligence on ACG. The transaction is also subject to Atrum shareholder approval. Completion is expected by late September.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/coal/04082016/atrum-coal-buys-stake-in-atlantic-carbon-2016-2155/