Bens Creek Group PLC (AIM: BEN, OTC: BENCF) announced that its CEO, Adam Wilson, will be stepping down.
Concurrently, the company has secured a new loan from major shareholder Avani for additional working capital.
The company faced disruptions at the beginning of the year due to severe weather in West Virginia. This led to a brief halt in production at its mine, caused by issues related to waste disposal and refuse cells.
Although production has resumed, there have been delays in train schedules for coal sales, leading to a significant accumulation of undelivered coal since the year’s start.
Bens Creek completed a 33,000-tonne coal order for Avani, but the delays resulted in higher-than-anticipated working capital usage.
To address this, Avani has provided a short-term loan of US$1.25 million and is discussing a further US$5 million working capital facility with Bens Creek.
These financial arrangements include amendments to an existing US$6.5 million loan facility established with Avani in July 2023.
Additionally, Bens Creek is in advanced negotiations with Avani for a non-exclusive agreement to deliver approximately 400,000 short tons of coal over the next few months.
The company also mentioned that Wilson’s departure will occur once a suitable successor is appointed.
