“Initially the asset looked promising, but following due diligence a number of issues arose which led to our decision not to proceed any further with the asset and to take refund of our $US700,000 deposit,” Atlantic managing director Steve Best said of the 158-acre property in Luzerne County.

“We have a stringent evaluation procedure in place to ensure that we find the right projects to fit our investment criteria.”

He noted the company had raised £12 million ($US19.6 million) under an aggressive strategy to act as regional consolidator in the coal fields of Pennsylvania, and the property in Duryea and Hughestown was just one of many it had been evaluating.

“Going forward we are confident that we have the right team and a healthy balance sheet in place to build a significant multi-project operation and look forward to announcing further developments at the appropriate time.”

The project Atlantic passed on was part of a bankruptcy estate for Kenneth Nowakowski. The operator’s deposit had been held in escrow by the Pennsylvania Bankruptcy Court since March, when it first secured the option.

Atlantic’s primary asset is another Pennsylvania property, the Stockton Colliery.