REG - Bens Creek Group PLC - Further disclosure re charge over shares

Bens CreekAnnouncement

11/11/2022 07:16

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RNS Number : 0694G  Bens Creek Group PLC  11 November 2022

11 November 2022

 

Bens Creek Group plc

 

("Bens Creek" or the" Company")

 

Further disclosure re charge over shares

 

Further to the announcement released on 10 November 2022, Bens Creek Group plc
(AIM:BEN), the owner of a metallurgical coal mine in North America supplying
the steel industry, announces an update in relation to the share charge
created (the "Charge") on 27 October 2022 and registered at Companies House by
MBU Capital Group Limited ("MBU Capital"), in favour of Bluestar Global
Capital Limited ("Bluestar"), over all of the ordinary shares which MBU
Capital owns in Bens Creek. This update is based on correspondence which the
Company has had with MBU Capital and Bluestar.

 

MBU Capital and Bluestar have both separately confirmed to the Company that
the Charge is part of a long-term, routine financing arrangement on standard
commercial terms agreed between MBU Capital and Bluestar. The facility is not
highly leveraged and MBU Capital remains the legal and beneficial owner of the
shares in the Company to which the Charge relates.

 

MBU Capital and Bluestar have a successful, long-term business relationship
having conducted business together for over eight years, which they envisage
continuing. Their business interests are aligned and both parties have every
reason to believe that the current financing arrangements between the parties
will be repaid in the usual manner.  The term facility to which the Charge
relates is not expected to be repaid for at least twelve months and MBU
Capital and Bluestar have a mechanism in place to agree a further extension
beyond twelve months, if required.

 

Furthermore, MBU Capital and Bluestar have confirmed that the facility is not
subject to any margin calls related to the share price performance of the
Company.

 

MBU Capital and Bluestar have also confirmed to the Company that they have not
sold any of their shareholding in the Company and nor do they have any
immediate intention to sell any of their shareholding. At today's date MBU
Capital and its ultimate beneficial owner hold in aggregate 215,935,037
ordinary shares (the "Ordinary Shares") in the Company, representing 57.55% of
the Ordinary Shares of the Company. Bluestar holds 3.98% of the Ordinary
Shares of the Company. Both MBU Capital (including the ultimate beneficiary)
and Bluestar have indicated their intention to be long-term supporters of the
Company, as demonstrated by their recent investment of, in aggregate, £3m in
10,000,002 new Ordinary Shares issued by the Company at 30 pence per Ordinary
Share in the placing announced by the Company in August 2022.

 

Both MBU Capital and Bluestar have informed the Company's board that they
every confidence in Bens Creek's strategy to increase production and drive
shareholder value for all shareholders.

 

For further information please contact:

 Bens Creek Group plc                                            +44 (0) 204 558 2300

 Adam Wilson, CEO

 Murat Erden, CFO

 Allenby Capital Limited (Nominated Adviser and Joint Broker)    +44 (0) 203 328 5656

 Nick Athanas / Nick Naylor / George Payne (Corporate Finance)

 Kelly Gardiner (Sales and Corporate Broking)

 Optiva Securities Limited (Joint Broker)                        +44 (0) 203 137 1902

 Christian Dennis / Mariela Jaho / Daniel Ingram

 

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