Pennsylvanian anthracite coal mining company, Atlantic Coal, will receive US$ 5 million in funding, which will be used to develop the 410 acre Pott and Bannon site and for working capital purposes.
The company has announced it has entered into an agreement with YA Global Master SPV Ltd., an investment fund managed by Yorkville Advisors Global LP. YA Global will provide Atlantic Coal with a US$ 5 million loan facility, backed by a standby equity distribution agreement.
The Pott and Bannon site, located 25 miles from Atlantic Coal’s Stockton Anthracite coal mine, is estimated to have coal reserves of approximately 13.6 million t ROM.
Atlantic Coal will use the funding from YA Global to purchase machinery and hydrology and engineering studies, so that the company can prove reserves at the Pott and Bannon site. If the reserves are as expected, they will equate to approximately 4.1 million t of washed, saleable anthracite.
The estimated figures have been previously announced by the company and are based on information provided in a January 1999 report commissioned by the Reading Anthracite Company (the previous owner of the Pott and Bannon site).
The agreement between Atlantic Coal and YA Global is in line with the company’s strategy to increase anthracite production in the Pennsylvanian anthracite field.
Atlantic Coal’s managing director, Steve Best, said, “This loan facility with Yorkville provides the company with ready access to funds at a time of significant growth and development. We are focussed on driving the recently acquired Pott and Bannon site toward production. We believe the site contains approximately 4.1 million t of washed and saleable anthracite and we are looking to increase our revenues from our coal mining assets in Pennsylvania. We look forward to announcing the results of our forthcoming studies.”
“Anthracite prices have been depressed over the last year and suppliers have sought to reduce inventory,” Best noted. “The loan facility will provide Atlantic Coal with additional financial security should prices remain depressed.”
Adapted from press release by Samuel Dodson
Read the article online at: https://www.worldcoal.com/coal/25072013/atlantic_coal_mine_to_develop_pennsylvanian_coal_site_281/