Prior to publication, certain information contained within this
announcement was deemed by the Company to constitute inside
information for the purposes of Regulation 11 of the Market Abuse
(Amendment) (EU Exit) Regulations 2019/310. With the publication of
this announcement, this information is now considered to be in the
public domain.
12 April 2024
Bens Creek Group
plc
("Bens Creek" or the
"Company")
Corporate
update
Further to the Company's announcement
released on 8 April 2024, Bens Creek Group plc (AIM:BEN), the owner
of a metallurgical coal mine in North America supplying the steel
industry, provides the following update in relation to its
operations and working capital position.
On 9 April 2024 and 10 April 2024, the
Board of Bens Creek (the "Board") took the decision that, due to
the depressed metallurgical coal price, combined with financial
constraints at the Company and production difficulties at the mine,
to substantially reduce activity at Bens Creek Operations WV LLC
("BC Operations"), a wholly
owned operating subsidiary of the Company. As a consequence, BC
Operations has laid off 44 employees, a substantial number of the
employees who work at the mine in West Virginia.
Furthermore, the Board took the
decision that, effective from 11 April 2024, the mine will be
operated on a care and maintenance basis for the time
being.
Avani Resources Pte Ltd ("Avani"), the Company's largest
shareholder, main offtake partner and lender, is currently in
discussions with Bens Creek on the terms to provide additional
financial support to the Company and a term sheet to this effect is
being reviewed by the Company's legal counsel. Any such agreement
with Avani will likely constitute a related party transaction
pursuant to Rule 13 of the AIM Rules for Companies.
The Company continues to assess all
options available to it and will make further announcements at the
appropriate time.
For
further information please contact:
Bens
Creek Group plc +44
(0) 204 558 2300
Adam Wilson, CEO
Peter Shea, Chief of Staff
Allenby Capital Limited (Nominated Adviser and Joint
Broker) +44
(0) 203 328 5656
Nick Athanas / Nick Naylor / George Payne (Corporate Finance)
Kelly Gardiner / Guy McDougall (Sales and Corporate
Broking)
WH
Ireland Limited (Joint Broker)
Harry Ansell / Katy Mitchell
+44
(0) 207 220 1666
