(Sharecast News) - North American coal miner Bens Creek Group said in an update on Friday that it was taking "a number of steps" to increase its independence from its largest shareholder MBU Group Capital.
The AIM-traded firm said it has moved its UK office from MBU's head office to an independent location at 53 Davies Street.
It also agreed to terminate the administrative services and licence agreement with MBU, with immediate effect.
The company said it purchased, from MBU, the membership interests in Ben's Creek Rail Land, an entity which holds the leasehold interests of the land beneath the rail track operated by Vens Creek, which is owned by MBU subsidiary Ben's Creek Rail Holdings and consists of a 3.2 mile rail spur.
Bens Creek said it paid a "nominal cash consideration" for the purchase of Ben's Creek Rail Land.
"Since our initial public offering in October, we have made really significant progress," said chief executive officer Adam Wilson.
"We have reopened the mine and commenced production of metallurgical coal.
"We have signed an off-take agreement and completed the necessary repairs to the rail spur."
Wilson said it was therefore appropriate for the company to now develop its independence from MBU.
"The prior investment made by MBU has enabled us to take the early significant steps required to enable us to reactivate a dormant mine to one that is now producing metallurgical coal.
"We look forward to them continuing to be a supportive shareholder."
At 1255 BST, shares in Bens Creek Group were down 2.06% at 86.68p.
Reporting by Josh White at Sharecast.com.
Bens Creek (BEN)