Bens Creek Group PLC - US-focused metallurgical coal miner - Enters lease agreement with MGC Inc on a property adjacent to the existing Bens Creek mine in West Virginia. Property covers 1,200 acres, and the lease confers certain mining rights to Bens Creek and covers terms of a royalty agreements. Term of the lease is for a five year period starting from Wednesday.
The royalty agreement is for a minimum annual royalty payment of USD50,000, and Bens Creek will pay LGC an amount equal to 4% of the net selling price for coal mined.
"The board believe that the additional acreage will add substantially to the life of the underlying Bens Creek operations and help cement the group's position within the industry. The royalty rates we have put in place on the tonnage are similar to the existing Bens Creek mine and, should the Met coal price remain at current levels, be financially attractive for the group," says Chief Executive Officer Adam Wilson.
On Wednesday, Bens Creek raises USD6.0 million through the issue of convertible loan notes, which have a term of two years and attract interest at a rate of 15% per annum.
Current stock price: 32.90 pence
Year-to-date change: up sharply from 10.50p on October 19
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Bens Creek (BEN)