ATH Resources plc

ATH Resources plc

August 22, 2005 02:03 ET

ATH Resources plc: Acquisition of New Mining Equipment

LONDON, UNITED KINGDOM--(CCNMatthews - Aug. 22, 2005) - ATH Resources plc (AIM:ATH), one of the UK's largest coal producers, today announces that it has agreed terms to acquire a major package of new mining equipment from Finning (UK) Limited, the national Caterpillar dealer for Great Britain. The package, which amounts to Pounds Sterling 25.3 million, is for 83 units, including:

- 29 Caterpillar 777 dump trucks;

- 11 Caterpillar D9 bulldozers;

- 17 Caterpillar 325 and 330 coaling excavators;

- 17 Caterpillar 966 coal loading shovels;

- 6 Caterpillar 735 coal haulers; and,

- 3 Caterpillar 16H graders.

At the same time 27 older units are being part exchanged as part of the purchase.

The equipment will be used on the existing Skares Road and Garleffan mines, where coal production is progressing well, and at the recently acquired Grievehill and Glenmuckloch mines.

Tom Allchurch, Chief Executive of ATH Resources, commented: "This purchase of new mining equipment for the Group will replace some of our existing plant and provide new equipment for our recently acquired mines maximising efficiencies at each location. We have chosen one supplier as the Group employs a machine commonality purchasing policy wherever possible to reduce costs and ensure consistency in the servicing of our equipment."

Neil Dickinson, Managing Director of Finning (UK) Limited, said: "We are extremely pleased to be selected as the supplier to ATH Resources. We believe that CAT products are highly regarded in the mining sector and we look forward to an excellent partnership as we support the products to deliver maximum availability."

For further information:

ATH Resources plc
Tom Allchurch, Chief Executive Tel: +44 (0) 1302 760 462

Finning (UK) Limited
Neil Dickinson, Managing Director Tel: +44 (0) 1543 461 461

Media enquiries:

Henry Harrison-Topham / Charlie Jack Tel: +44 (0) 20 7398 7700

Notes to Editors:

ATH Resources plc is an AIM-listed operator of opencast coal mines in the UK with its current two operational mines, Skares Road and Garleffan, located near New Cumnock, East Ayrshire in Scotland. The Company is currently the third largest producer of coal in the UK producing approximately 1.6 million tonnes per annum. Coal was used to generate 34.7 per cent of the UK's electricity in 2003 and the Company 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 and Bank of Scotland. Following ATH Resource's incorporation in October 2003, and backed by a follow on investment from The Alchemy Plan, the Company acquired the Garleffan mine in November 2003.

In June 2005 the Group acquired new opencast sites, Grievehill and Glenmuckloch in Scotland for Pounds Sterling 18 million using the Pounds Sterling 16.8 million raised by way of an Open Offer on the basis of 1 New Ordinary Share for every 3 Existing Ordinary Shares. The acquisition increased the Group's reserve base by 16% and provided longer term stability to the business.

In addition to its operating mines, the Company also has a number of other coal mining projects in Scotland and two through its French subsidiary, SRMMC including a series of six existing coal concessions in south-central France, covering an area of 36km, 2 with an estimated resource of approximately 4.5 million tonnes of recoverable coal.

ATH Resources listed on the AIM market of the London Stock Exchange in June 2004 under the symbol ATH.L

Finning (UK) Limited is the national Caterpillar dealer for Great Britain, serving England, Scotland and Wales. Finning (UK) is a division of Finning International Inc., one of the world's largest distributors of heavy equipment and is quoted on the Toronto Stock Exchange (FTT). Finning (UK) sells, finances and provides customer services for Caterpillar and complementary equipment throughout Great Britain. The company UK headquarters are in Cannock, Staffordshire and there are numerous locations nation-wide.


For more than 75 years, Caterpillar Inc. has been building the world's infrastructure and, in partnership with its worldwide dealer network, is driving positive and sustainable change on every continent. With 2004 sales and revenues of $30.25 billion, Caterpillar is a technology leader and the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines.

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