Bens Creek Group PLC (AIM:BEN, OTC:BENCF) said it entered into a coal sub-lease agreement with Star Ridge Land LLC on two parcels of land covering about 2,640 acres in Mingo County, West Virginia.
The land touches Bens Creek’s recently re-opened metallurgical coal mine.
The agreement gives Bens Creek certain mining rights on the property and a royalty arrangement with Star Ridge.
It also allows Bens Creek to undertake metallurgical coal production from any reserves that may exist on the property.
“The board believes that this asset will bring potential additional production within three years and will significantly add to the reserve base of the group,” said chief executive Adam Wilson.
The company also confirmed a second highwall miner was delivered to the existing Bens Creek site last month and that railway work has been completed that connects the existing Bens Creek property to the Norfolk Southern (NYSE:NSC) railway mainline.