REG - Bens Creek Group PLC - Proposed sale of highwall miner

Bens CreekAnnouncement

22/12/2022 07:00

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RNS Number : 5319K  Bens Creek Group PLC  22 December 2022

Bens Creek Group plc

 

("Bens Creek" or the" Company")

 

Proposed sale of highwall miner

 

Bens Creek Group plc (AIM:BEN), the owner of a metallurgical coal mine in
North America supplying the steel industry, announces the proposed sale of its
own highwall miner (#20) to Civil LLC for a total cash consideration of $3.6
million. Civil LLC is a Georgia limited liability company, authorised to
conduct mining business in the state of West Virginia, USA.

 

Further to the Company's mining update released on 7 November 2022, where Bens
Creek stated it was reviewing its options with regards to its owned highwall
miner and it had received offers which were under consideration, the Company
has now agreed the proposed sale of the highwall miner with Civil LLC.

 

The Company continues to have access to two highwall miners through its
highwall mining contractor, Mega Highwall Mining LLC ("MHW"). The first
highwall miner is presently being deployed on the Bens Creek site at the new
permitted area and the second highwall miner is expected to be in place
on-site in January 2023. These two highwall miners from MHW are sufficient to
support the Company's production plans for 2023.

 

The cash consideration will be paid to Bens Creek by Civil LLC in monthly
instalments through to July 2023. The Company originally purchased highwall
miner #20 for a consideration of $2.5 million in cash in February 2022 and it
had a book value of $2.7 million as at 31 March 2022 as set out in the
Company's audited accounts for the year ended 31 March 2022.

 

As previously announced the Company, separately, acquired its initial fleet of
mining and earth moving equipment in August 2022 which was subsequently
financed by an equipment financing facility with McGinty Road Partners LP
("McGinty") and which totals $6.1 million as detailed in the Company's recent
interim results. As part of this financing McGinty took a lien over the
Company's highwall miner and, as a result, c.$2.0 million of this facility
will be repaid to McGinty from the proceeds of the sale of the highwall miner.
The balance of the funds from the sale of the highwall miner will be used by
the Company for general working capital and operational purposes.

 

Ownership of the highwall miner shall remain with Bens Creek until the payment
obligations of Civil LLC have been met in full.

 

In addition, as part of the sale of the highwall miner, the Company has also
sold three 777C CAT 100-ton rock trucks to Civil LLC for a total consideration
of $300,000 payable in cash instalments over a period of 3 months.

 

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

 

"Having negotiated successfully with MHW for the provision of a second
highwall miner the need for us to own a machine has been reduced and as such a
sale seemed the appropriate course of action. We are pleased to have achieved
a positive result in the disposal."

 

 

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)

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

 Harry Ansell / Katy Mitchell

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