The anthracite coal producer had been in the option deal since February.

While there was potential to extend it, the exercise period with the unnamed party expired March 31, with Atlantic officials determining the assets were not worth the $35 million exercise price tag.

“Following these discussions, it was determined by the Atlantic Coal board of directors that an agreement on principal terms could not be achieved that would be acceptable to the company and in the best interests of the company's shareholders,” the company said.

“Discussions with the vendor have therefore been terminated.”

The miner confirmed that, following negotiations in connection with the proposed Target transaction, the company was able to secure three indicative offers of debt financing.

In better operations news, managing director Steve Best said Atlantic was going to fast-track its $9 million deal to take control of the Pott & Bannon anthracite mine in Pennsylvania.

The complex is just 25 miles from its flagship Stockton colliery in Schuylkill County.

“The Pott & Bannon site, which the board estimates has the potential to more than treble Atlantic Coal’s existing reserves, is a potentially transformational addition to our Pennsylvanian portfolio and having minimized the cash portion payable as part of the transaction, we believe that this represents value for shareholders,” Best said in January.

He noted at the time that Atlantic wanted to pursue an early route to production and, as such, it was producing a mine plan and an updated report of reserves so it could start operations over the next 12 months.

“We … envisage this to be a stand-alone project, benefitting from excellent local infrastructure and robust regional demand,” Best said.

“Additionally, with only 25 miles separating Pott & Bannon from our existing Stockton Colliery, where we recently reported record production, we believe that we will be able to take advantage of the potential synergies that exist with our current operations."