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

Bens CreekAnnouncement

29/02/2024 07:00

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RNS Number : 8657E  Bens Creek Group PLC  29 February 2024

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.

 

29 February 2024

 

Bens Creek Group plc

("Bens Creek" or the "Company")

 

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

 

Further to the Company's announcement on 9 February 2024, 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 on
28 February 2024 executed an agreement (the "Agreement") with Avani Resources
Pte Ltd ("Avani"), the Company's largest shareholder, for the delivery of
400,000 (+/- 10%) short tons of Bens Creek High Vol B Metallurgical coal (the
"Coal").

 

The delivery of the Coal is expected to be made over 12 months, subject to any
train delays, starting from 1 April 2024 unless otherwise mutually agreed
between Bens Creek and Avani. It is the intention of the parties to supply
three to five trains per month, subject to levels of coal production and train
availability.

 

Terms of the Agreement

 

 Seller             Bens Creek Operations WV LLC
 Buyer              Avani Resources Pte Ltd
 Material           Bens Creek High Vol B coal
 Quantity           Quantity 400,000 (+/- 10%) short tons.
 Shipping Schedule  Over 12 months starting from 1 April 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 by SGS
                    Labs or any other lab as mutually acceptable. 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 will be in line with the
prevailing 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.

 

The Agreement, which is a non-exclusive contract, also allows the Company to
place up to 240,000 (+/- 10%) additional short tons with other buyers of Coal
on the same terms and conditions as are applied to the contracted quantity of
Coal within the Agreement.

 

This Agreement follows on from: (i) Avani entering into a non-exclusive sales
and marketing agreement, details of which were announced by Bens Creek on 26
July 2023; and (ii) the sale of 33,000 short tons of High Vol B coal to Avani
which was fulfilled by the Company in January 2024, details of which were
announced by the Company on 30 November 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 announce this offtake with Avani which, alongside the
appointment of Chris Walker, should see the company continue its journey to
being a significant producer in both the domestic and international
marketplaces."

 

 

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

 

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