Corporate Update
Following the Company’s announcement on April 8, 2024, Bens Creek Group plc (AIM: BEN), which owns a metallurgical coal mine in North America serving the steel industry, is updating its operational status and financial position.
On April 9 and 10, 2024, the Bens Creek Board decided to significantly reduce operations at Bens Creek Operations WV LLC, a fully-owned subsidiary, due to low metallurgical coal prices, financial limitations, and operational challenges at the mine. This reduction has resulted in the layoff of 44 employees at the West Virginia mine.
Additionally, starting April 11, 2024, the mine will be maintained on a care and maintenance basis for the foreseeable future.
Avani Resources Pte Ltd, the Company’s principal shareholder, main offtake partner, and creditor, is currently negotiating with Bens Creek to provide further financial support. A term sheet is under review by the Company’s legal advisors. Any agreement with Avani is expected to be considered a related party transaction under Rule 13 of the AIM Rules for Companies.
The Company is evaluating all possible options and will provide further updates when appropriate.
Zak Mir commented; The writing on the wall has clearly been in place for some time at BEN. It is a shame that shareholders have had such a poor ride, after such a good initial post-IPO experience.
