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.
27 February 2024
Bens Creek Group
plc
("Bens Creek" or the
"Company")
Related party
transaction
Bens Creek Group plc (AIM:BEN), the
owner of a metallurgical coal mine in North America supplying the
steel industry, announces that Avani Resources Pte Ltd ("Avani"),
the Company's largest shareholder, has advanced a further $3
million to support the Company's operating requirements, pursuant
to the proposed working capital facility from Avani to the Company
which was announced on 9 February 2024 (the "Avani Facility"). This
further advance will enable Bens Creek to address its working
capital requirements which have resulted from the challenging
trading environment that the Company is currently experiencing, as
set out in the announcement of 9 February 2024.
On 9 February 2024 the Company
announced that it was in advanced discussions with Avani on the
terms of the Avani Facility. It is currently anticipated the
Avani Facility will be for $5.0 million and to date Avani has
advanced a total of $4.25 million to the Company.
As announced on 9 February 2024 the
broad terms of the Avani Facility have been agreed between Avani
and the Company however the agreement is still in the process of
being negotiated and at this stage has not been executed nor have
the terms of the Avani Facility been finalised. The entering into
of the Avani Facility agreement will, as announced by the Company
on 9 February 2024, constitute a related party transaction pursuant
to Rule 13 of the AIM Rules for Companies. Should the Company and
Avani not agree to the terms of the Avani Facility and not enter
into the working capital facility agreement then the parties would
be required to agree on a repayment date for the advances made to
date by Avani.
In addition, on 9 February 2024 the
Company announced that it is in discussions with Avani to: i) amend
the terms of the existing $6.5 million loan facility (the "Loan
Facility") put in place in July 2023 by Avani; and ii) enter into a
proposed new offtake agreement with Avani. Discussions remain
ongoing between Avani and the Company on both these matters. It is
anticipated that a condition precedent of the Avani Facility will
be the Company and Avani entering into the proposed new offtake
agreement for the delivery of a minimum of 400,000 short tons of
coal.
Related party transaction
The advance of the further $3 million
by Avani to the Company 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 $3 million advance from Avani are
fair and reasonable insofar as the Company's shareholders are
concerned.
Further announcements will be made by
Bens Creek in due course.
For
further information please contact:
|
Bens
Creek Group plc
Adam Wilson, CEO
Peter Shea, Chief of Staff
|
+44 (0) 204
558 2300
|
|
Allenby Capital Limited (Nominated Adviser and Joint
Broker)
Nick Athanas / Nick Naylor / George
Payne (Corporate Finance)
Kelly Gardiner / Guy McDougall (Sales
and Corporate Broking)
|
+44 (0) 203
328 5656
|
|
|
|
|
WH
Ireland Limited (Joint Broker)
Harry Ansell / Katy
Mitchell
|
+44 (0) 207
220 1666
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