Atlantic Coal, the AIM-listed Pennsylvania-based coal production and processing company, has announced that the Reading Anthracite Company (RAC), an established operator in Pennsylvania's anthracite coal industry, has approved the lease option agreement over the 410-acre mining property.
Atlantic Coal has consequently made the $250,000 payment to RAC in order to secure its entry into the lease option.
RAC directors have estimated the site to contain reserves of 4.1m tons of clean coal, with the potential to more than double Atlantic Coal's existing anthracite reserves.
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In November, the average sales price during November 2011 of anthracite in Pennsylvania was $156 per ton.
Atlantic's share price rose 4.49% to 0.47p by 13:59.
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