The UK-headquartered company said it had struck an agreement with Yorkville Advisors-managed YA Global Master SPV for a loan facility, backed by a standby equity distribution deal, for the 410-acre complex that neighbors its active Stockton colliery.

Pott and Bannon is estimated to have about 13.6 million tons of run-of-mine coal.

Officials said it would use the loan to obtain machinery and conduct hydrology and engineering studies to prove the reserve base at the site.

A successful result will equate to 4.1Mt of washed and saleable anthracite from P&B.

The estimated figures Atlantic has been using to date are based on a 1999 report commissioned by the complex’s former owner, Reading Anthracite.

Atlantic managing director Steve Best said the decision was in line with its plan to build its anthracite footprint in eastern Pennsylvania.

“This loan facility with Yorkville provides the company with ready access to funds at a time of significant growth and development,” he said, adding that Atlantic was focused on driving Pott and Bannon site toward production.

“Anthracite prices have been depressed over the past year and suppliers have sought to reduce inventory. The loan facility will provide Atlantic Coal with additional financial security should prices remain depressed.”