ATH Ath Resources

 

TIDMATH 
 
RNS Number : 8179B 
ATH Resources plc 
03 November 2009 
 

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| Press Release                      |                        3 November 2009 | 
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ATH Resources plc 
("ATH Resources" or "the Group") 
Refinancing of bank debt 
 
 
ATH Resources plc ("the Group" or "ATH"), one of the UK's largest coal 
producers, is pleased to announce the completion of the refinancing of the 
Group's banking arrangements. 
The Group has agreed a new GBP30 million revolving credit facility ("RCF") in a 
club deal with HSBC and Yorkshire Bank. The RCF comes into effect 
immediately and extends for a three year period ending in November 2012. Maximum 
permitted borrowings under the RCF are GBP30 million during the first year of 
the new arrangements, GBP27.5 million during the second year and GBP22.5 million 
during the final year. 
The new arrangements secure attractive, long term funding for the Group and 
provide a more appropriate capital structure and the financial resources to 
continue developing surface mining and coal recovery projects within the UK. The 
RCF replaces the Group's existing term debt arrangements, which were due to 
expire in February 2011, and working capital facilities. The combined 
outstanding balances under the previous arrangements totalled GBP20 million at 4 
October 2009, the Group's most recent financial year-end. 
Commenting on the new banking arrangements, Tom Allchurch, Chief Executive of 
ATH Resources, said "I am delighted that we have been able to secure attractive, 
long term debt funding for the Group. The new facility provides ATH Resources 
with greater flexibility and the capacity to fund future projects. We are very 
pleased to be working with HSBC and Yorkshire Bank, both of whom know 
ATH Resources well and have been very supportive in developing these new 
financing arrangements. I look forward to nurturing a strong partnership with 
both banks through the next period of ATH Resources' development." 
-Ends- 
  For further information: 
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| ATH Resources plc                         |                                | 
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| Tom Allchurch, Chief Executive            | Tel: +44 (0) 1302 760 462      | 
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| tom.allchurch@ath.co.uk                   | www.ath.co.uk                  | 
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| Evolution Securities Limited              |                                 | 
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| Joanne Lake / Peter Steel                 | Tel: +44 (0)113 243 1619        | 
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| joanne.lake@evosecurities.com             | www.evosecurities.com           | 
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Media enquiries: 
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| Abchurch Communications                   |                                 | 
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| Charlie Jack / George Parker              | Tel: +44 (0) 20 7398 7719       | 
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| george.parker@abchurch-group.com          | www.abchurch-group.com          | 
+-------------------------------------------+---------------------------------+ 
 
 
Notes to Editors 
 
 
ATH Resources is an AIM-listed operator of surface coal mines in the UK with 
five operational mines in Scotland; Skares Road, Grievehill and Laigh Glenmuir 
in East Ayrshire, Glenmuckloch in Dumfries and Galloway and Muir Dean in Fife. 
The Company is currently the third largest producer of coal in the UK, producing 
approximately 2 million tonnes per annum. Coal is used to generate around a 
third of the UK's electricity and the Company now holds coal supply contracts 
with four of the UK's main electricity generating companies. 
The management team has been in place since 1998. It acquired the rights to 
operate (and subsequently acquire) the Skares Road mine with support from The 
Alchemy Plan. Following ATH Resources' incorporation in October 2003, and backed 
by a follow on investment from The Alchemy Plan, the Company acquired the 
Garleffan mine in November 2003. Garleffan is currently being restored having 
finished coaling in June 2006. ATH Resources listed on the AIM market of the 
London Stock Exchange in June 2004. 
In June 2005, having raised GBP18 million by way of an Open Offer, the Group 
acquired two new opencast sites, Grievehill and Glenmuckloch in Scotland. The 
acquisition increased the Group's reserve base by 160%. 
In May 2006, the Group acquired ATH Regeneration, a successful coal recovery, 
land remediation and regeneration business with a particular focus on colliery 
spoil heap reclamation projects. The acquisition, which was earnings enhancing, 
allowed ATH to build on its skills as a regenerator of land, whilst developing 
strong relationships with key English planning authorities. The Company has been 
successfully integrated into the Group. The operational diversification that the 
acquisition brings to the Group will be a significant driver of ATH's organic 
growth going forward both in the UK and overseas and the business is actively 
pursuing a number of projects in Australia. 
For the year ending 28 September 2008, the Group achieved turnover of GBP76.9 
million, an increase of 9% on its 2007 year end, whilst operating profit 
increased by 7% to GBP11.9m for the same period. 
Further information on ATH Resources can be found at www.ath.co.uk. 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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