REG - Bens Creek Group PLC - Marketing and sales services agreement with Avani

Bens CreekAnnouncement

26/07/2023 07:00

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RNS Number : 1692H  Bens Creek Group PLC  26 July 2023

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the public domain.

 

26 July 2023

 

Bens Creek Group plc

("Bens Creek" or the "Company")

 

 Marketing and sales services agreement with Avani

 

Bens Creek Group plc (AIM:BEN), the owner of a metallurgical coal mine in
North America supplying the steel industry, has, on 25 July 2023, entered into
a non-exclusive marketing and sales services agreement (the "Marketing
Agreement") with Avani Resources Pte Ltd ("Avani"), the Company's largest
shareholder.

 

Terms of the Marketing Agreement

 

Under the terms of the Marketing Agreement, Avani shall market coal produced
by Bens Creek. The Company has, until now, undertaken all of its coal sales
through Integrity Coal Sales, Inc. New York ("Integrity"). Under the Marketing
Agreement Avani will bid for product from the Company on similar terms to that
currently offered by Integrity.

 

Bens Creek and Avani shall negotiate in good faith and enter into a separate
sale agreement for the sale and purchase of each parcel of coal. Bens Creek
and Avani shall mutually discuss and agree the commercial terms and conditions
for each such sale agreement.

 

The Company and Avani may terminate the Marketing Agreement on three months'
prior written notice to the other party and the Marketing Agreement shall be
terminated automatically if Avani is no longer a shareholder in Bens Creek.

Related party transaction

 

Bens Creek entering into the Marketing 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 (who are all independent of Avani) consider, having
consulted with the Company's nominated adviser, Allenby Capital Limited, that
the terms of the Marketing Agreement with Avani are fair and reasonable
insofar as the Company's shareholders are concerned and as such have approved
the Company entering into the Marketing Agreement.

 

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

 

"We have been examining the possibility of expanding our sales channels which
to date has been driven exclusively through our offtake partner Integrity. We
have been very pleased with the service provided by Integrity and we will
continue to utilise their services. The addition of Avani, who bring
tremendous subcontinent expertise (in particular in India, which is set to
become the World's largest market), will provide us with both competition for
our product and greatly increase exposure of Bens Creek coal within our target
market."

 

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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