The company said the 60-month contract not only gives it 100% rights but also grants it full access and use of the buildings and equipment for the mines, located on 58 acres in Pikeville.
According to data, previous geological evaluations had reflected coal reserves valued at more than $US75 million and while the block size was not disclosed, officials said the coal was contained in 40-inch seams throughout the property.
“We are thrilled to enter into this thriving market,” Kiley Group president William Smart said of the new deal with Stroup, which has been owned by the same family group for 44 years.
“With technological advances in the natural resource industry, the demand for coal has been rising dramatically.
“Growth in this arena has been phenomenal over the last few years and we believe we are positioning The Kiley Group to be extremely successful.”
Kiley is still negotiating the final price for the building and equipment assets.