REG - Bens Creek Group PLC - Issue of $7.6m of loan notes to ACAM LP

Bens CreekAnnouncement

11/07/2023 12:00

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RNS Number : 6692F  Bens Creek Group PLC  11 July 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.

 

11 July 2023

Bens Creek Group plc

("Bens Creek", the "Group" or the "Company")

 

Issue of $7.6m of loan notes to ACAM LP to extinguish final convertible loan
note due December 2023

and

issue of warrants to ACAM LP

Bens Creek Group plc (AIM:BEN), the owner of a metallurgical coal mine in
North America supplying the steel industry, announces that it has issued
c.$7.57 million (equivalent to c. £5.89 million based on current exchanges
rates) of unsecured loan notes (the "Loan Notes") to ACAM LP ("ACAM").

The Loan Notes have been issued to ACAM in replacement for the now cancelled
$6m of convertible loan notes (the "CLNs") issued to ACAM on 14 December 2021,
full details of which were included in the Company's announcement of 15
December 2021. The CLNs were due for repayment on 31 December 2023.

Following negotiations with ACAM it has been agreed that they would cancel the
CLNs and accept the Loan Notes by way of replacement. The Loan Notes have a
term of 18 months. The Loan Notes are not convertible into new ordinary shares
in the Company.

The terms of the Loan Notes are broadly similar to the loan notes issued to
Avani Resources Pte Ltd, details of which were announced by Bens Creek on 7
July 2023.

The Company has also issued ACAM with a total of 21,082,257 warrants to
subscribe for new ordinary shares in Bens Creek exercisable at 28 pence per
ordinary share. The warrants have a life of five years from the date of issue
and can be exercised at any time by ACAM during the period ending 10 July
2028.

Terms of the Loan Notes

Bens Creek has entered into an unsecured loan note agreement with ACAM for a
total subscription of $7,567,990 of Loan Notes. The Loan Notes have a term of
18 months and interest will roll up and be repaid as a bullet at maturity of
the Loan Note (the "Repayment Date").

Bens Creek will repay to ACAM $2 per tonne of clean coal sold within 7
business days of production (the "Coal Payments"). The principal outstanding
under the Loan Notes, less Coal Payments or other prepayments, will be
repayable on the Repayment Date.

Simple interest shall be added to the principal amount of the outstanding Loan
Notes on each relevant Repayment Date. The interest shall be calculated at a
rate of 15.1% per annum from and including the date of issue of the Loan
Notes, up to and including the date of the redemption or repurchase of the
relevant Loan Notes. The interest shall be payable in the same manner as in
the case of the original principal amount of the Loan Notes and shall
otherwise be treated as principal of the Loan Notes for all purposes.

In the event Bens Creek redeems or fully repays the Loan Notes prior to the
Repayment Date it shall, together with the payment of the principal amount
outstanding, pay for the account of the Lender a prepayment calculated at a
rate of 15% per annum from and including the date of issue of the Loan Notes
up to and including the date of the redemption or repurchase of the Loan
Notes.

The amount described in the paragraph above shall become payable by Bens Creek
upon a prepayment or early redemption of the Loan Notes prior to the relevant
Repayment Date.

The Loan Notes are not convertible into new ordinary shares of the Company.

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

"The provision of early financial support by ACAM was instrumental in allowing
the Company to enhance its earthmoving fleet and to substantially complete the
initial necessary bench construction to support our high wall miner. We are
pleased that we have been able to successfully repay in full the CLNs due this
summer (announced on 7 July 2023) and we are delighted that ACAM have shown
further confidence in the Company by entering into these new loan
arrangements."

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 (Sales and Corporate Broking)

 WH Ireland Limited (Joint Broker)                                                   +44 (0) 207 220 1666

 Harry Ansell / Katy Mitchell

 

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