REG - Bens Creek Group PLC - Update on acquisition of Ben’s Creek Rail Holding

Bens CreekAnnouncement

31/03/2023 07:00

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RNS Number : 8586U  Bens Creek Group PLC  31 March 2023

31 March 2023

 

Bens Creek Group plc

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

 

Update on proposed acquisition of Ben's Creek Rail Holding LLC

Bens Creek Group plc (AIM:BEN), the owner of a metallurgical coal mine in
North America supplying the steel industry, announces that, further to its
announcement of 23 December 2022, its wholly owned subsidiary, Ben's Creek
Carbon LLC, has given notice under the terms of its existing  agreement with
MBU Capital Group Ltd  ("MBU") in connection with its acquisition of the
membership interests in Ben's Creek Rail Holding LLC ("BC Rail Holding") to
acquire a further 26% of the membership interests of BC Rail Holding for a
cash payment of $169,000. The consideration is being satisfied from the
Company's existing cash resources.

This additional acquisition will take Bens Creek's ownership to 52% of the
membership interests in BC Rail Holding. Under the agreement Bens Creek Group
has the right to acquire 100% of BC Rail Holding from MBU for a total
consideration of $650,000. Following this transaction Bens Creek will retain
the right to acquire the remaining 48% from MBU for a total further
consideration of $312,000, to be satisfied in two tranches.

Since 1 April 2022 Bens Creek and MBU have, as previously announced, taken
various steps to achieve a separation between the two companies. The
additional acquisition of membership interests in BC Rail Holding is a
continuation of this separation strategy.

 

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

'As part of the continued effort to create separation between Bens Creek and
MBU we are pleased to have now acquired the majority of Ben's Creek Rail
Holdings.'

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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