TIDMATC
RNS Number : 1308B
Atlantic Coal PLC
14 February 2011
Atlantic Coal plc / Index: AIM / Epic: ATC / Sector: Mining
14 February 2011
Atlantic Coal plc ("Atlantic" or the "Company")
Placing of GBP12.0m, Issue of Equity and Notice of General
Meeting
Atlantic Coal Plc, the AIM listed open cast coal production and
processing company with activities in Pennsylvania, USA, is pleased
to announce that it has completed a conditional placing of
1,600,000,000 new ordinary shares of 0.07 pence each in the Company
(the "Placing Shares") at a price of 0.75 pence per Placing Share
(the "Placing Price"), raising GBP12.0 million (before fees and
expenses) (the "Placing"). Allenby Capital acted as lead broker to
the Company with Cornhill Capital and FoxDavies acting as
co-brokers.
Background to the Placing and use of proceeds
The Directors believe that there is an opportunity to raise
funds from a small number of institutional and other investors at
the present time, including the Company's principal investor, the
Blackrock Smaller Companies Fund. The Directors have therefore
decided to effect the fundraising by way of the Placing following a
limited and targeted marketing exercise, rather than by offering
all shareholders the opportunity to acquire further shares. The
Directors believe that the additional cost and delay incurred in
connection with any such offer would not have been in the best
interests of the Company.
The net proceeds of the Placing are estimated at GBP11.4 million
and, in addition to funding the general working capital
requirements of the Company, this money will be used to assist the
Directors in evaluating and, if thought appropriate by the
Directors, proceeding with potential acquisitions. In this regard,
the Directors are currently in the process of evaluating a number
of potential acquisitions with the intention to extend Atlantic's
resource base.
Current trading and prospects
The Company's trading for the year ending 31 December 2010 was
broadly in line with the Directors expectations and, having
increased production at the Company's primary asset, the Stockton
Colliery in recent months, the Directors remain confident about the
prospects of the Company.
Directors' participation
As part of the Placing, the Directors and their related parties
(within the meaning of the AIM Rules for Companies) are subscribing
for the following Placing Shares at the Placing Price:
Total number of
ordinary shares Percentage of
Number of Placing held following Enlarged Share
Director Shares Admission Capital
------------------- ------------------ ------------------- ----------------
Dr Peter Chinneck 32,000,000 213,000,000 5.51
------------------- ------------------ ------------------- ----------------
Adam Wilson 8,000,000 126,307,070 3.26
------------------- ------------------ ------------------- ----------------
Mary Catherine
Best* 6,666,666 201,495,299 5.21
------------------- ------------------ ------------------- ----------------
* Stephen Best, who is the Managing Director of the Company, is
the spouse of Mary Catherine Best, and a director of American
Investments Limited. American Investments Limited holds 73,960,418
ordinary shares of 0.07 pence in the Company representing 1.91 per
cent. of the Enlarged Share Capital.
Atlantic Chairman, Adam Wilson, said: "We are extremely pleased
with the support we have received from new and existing
shareholders, including the Company's principal investor, the
Blackrock Smaller Companies Fund. The additional funds raised will
enable us to continue to pursue a defined expansion strategy to
build on Atlantic's current position through the acquisition of
complementary assets particularly in the Pennsylvania anthracitic
belt. To this end we are continuing to evaluate a number of
opportunities."
Atlantic Managing Director, Steve Best, said: "We anticipate
that the additional funds raised will enable us to progress quickly
towards our target of increasing production and raising operating
margins at our primary current producing asset, the Stockton
Colliery in Pennsylvania. The Stockton Colliery is located in a key
anthracite region with strong local demand for our product range.
With an increased cash position, we believe that we will be ideally
placed to capitalise further upon our operational strengths, raise
production and take advantage of the current global coal market.
Accordingly, we look forward to updating shareholders with
developments."
Conditions to the Placing
The Placing is conditional upon, inter alia, the passing of
resolutions to give the Directors the authority to issue the
Placing Shares free of any rights of pre-emption at a General
Meeting of the Company, to be held at 10:00am on 3 March at 1
Berkeley Street, London W1J 8DJ (the "GM").
Subject to the approval of shareholders at the GM, it is
expected that the Placing Shares will be admitted to trading on AIM
on or around 4 March 2011. The Placing Shares will represent 41.36
per cent. of the enlarged share capital of Atlantic. The total
enlarged issued share capital of Atlantic following Admission will
be 3,868,772,016 ordinary shares of 0.07 pence each in the capital
of the Company. The above figure may be used by shareholders as the
denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change to their
interest in, the share capital of the Company under the Disclosure
and Transparency Rules.
A circular will be posted to shareholders on or around 14
February 2011 and will be available at that time on the Company's
website, www.atlanticcoal.com, in accordance with AIM Rule 26.
**ENDS**
For further information on the Company, visit:
www.atlanticcoal.com or contact:
Steve Best Atlantic Coal plc Tel: 020 3328 5670
Nick Naylor Allenby Capital Limited Tel: 020 3328 5656
Alex Price Allenby Capital Limited Tel: 020 3328 5656
Daniel Fox Davies FoxDavies Tel: 020 7936 5230
Hugo de Salis St Brides Media & Finance Tel: 020 7236 1177
Ltd
Elisabeth Cowell St Brides Media & Finance Tel: 020 7236 1177
Ltd
Notes
Atlantic Coal Plc is an AIM listed coal production and
processing company focussed predominantly on open cast mining and
the processing of anthracite coal in Pennsylvania, USA. The
Company's primary asset is the Stockton Colliery, a producing
surface coal mine and adjacent anthracite preparation plant
encompassing an area of approximately 900 hectares located in Hazel
Creek in North-East Pennsylvania, which has current Proven Reserves
of 4.2 million tons run-of-mine ("ROM") coal.
Atlantic Coal's strategy is to create a significant mid-tier
coal company; both through the expansion of activities at the
Stockton anthracite mine and identifying additional sites in
Pennsylvania to build its production and resource profile,
primarily by acquiring defined assets in stable, recognised, high
quality coal regions. The Board has identified opportunities to
expand within the region and is involved in ongoing negotiations
regarding adjacent sites, with the intention of acting as a
regional consolidator in the Pennsylvanian Coal Field. Expansion
within the local area has the potential to minimise upfront deal
costs as a result of existing and proven infrastructure, equipment,
facilities and market demand.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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