REG - Bens Creek Group PLC - High Vol B (HVB) coal sale to Avani Resources

Bens CreekAnnouncement

30/11/2023 12:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231130:nRSd2489Va&default-theme=true

RNS Number : 2489V  Bens Creek Group PLC  30 November 2023

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.

 

30 November 2023

 

Bens Creek Group plc

("Bens Creek" or the "Company")

 

High Vol B (HVB) coal sale to Avani Resources Pte Ltd

 

Bens Creek Group plc (AIM:BEN), the owner of a metallurgical coal mine in
North America supplying the steel industry, is pleased to announce that Bens
Creek Operations WV LLC ("BC Operations"), a wholly owned operating subsidiary
of the Company, has executed an agreement (the "Agreement") with Avani
Resources Pte Ltd ("Avani"), the Company's largest shareholder, for the
delivery of 3 unit trains comprising a total of 33,000 short tons of Bens
Creek High Vol B Metallurgical coal (the "Coal").

 

The delivery of the Coal is expected to be made, subject to train delays, no
later than the end of January 2024. This sale is in addition to existing and
ongoing business.

 

Terms of the Agreement

 

 Seller             Bens Creek Operations WV LLC
 Buyer              Avani Resources Pte Ltd
 Material           Bens Creek High Vol B coal
 Quantity           Quantity 33,000 short tons: approximately 3 trains.
 Shipping Schedule  Deliveries to be as per Norfolk Southern schedule no later than the end of
                    January 2024.
 Delivery Point     Glen Alum Siding
 Quality analysis   Seller to arrange for sampling and analysis to be done at the time of loading
                    the railway cars at Glen Alum Siding. Sampling and analysis to be done either
                    by SGS or Gallaghar Labs. The analysis thus done shall be the final quality to
                    determine penalties, if any, to be applicable.
 Weight analysis    Final weights for invoicing shall be determined as per weight taken by railway
                    haulage provider.

 

The Coal is being purchased by Avani at a price which is in line with current
market rates for the sale and purchase of High Vol B coal. The quality of the
coal will be in keeping with standard production from the Bens Creek mine.

 

This Agreement follows on from Avani entering into a non-exclusive sales and
marketing agreement, details of which were announced by Bens Creek on 26 July
2023.

 

 

Related party transaction

 

Bens Creek entering into the Agreement with Avani is deemed to be a
transaction with a related party pursuant to rule 13 of the AIM Rules for
Companies by virtue of Avani being a 29.86% shareholder of the Company. The
directors of the Company (except for Rajesh Johar who represents Avani on the
Company's board) consider, having consulted with the Company's nominated
adviser, Allenby Capital Limited, that the terms of the Agreement with Avani
are fair and reasonable insofar as the Company's shareholders are concerned.

 

 

 

Adam Wilson, Chief Executive Officer of Bens Creek, commented:

 

"'We are delighted to book our first trade with Avani. It demonstrates their
ongoing commitment to the business, and it is the first step to what will, we
hope, become a burgeoning and profitable partnership."

 

 

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)                               +44 (0) 207 220 1666

 Harry Ansell / Katy Mitchell

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  AGRFBLFXXFLEFBK