Purchase of a second highwall miner for Bens Creek

RNS Number : 7446Y

Bens Creek Group PLC

18 January 2022

 

Prior to publication, the information contained within this announcement was deemed by the Group 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.

18 January 2022

Bens Creek Group plc

("Bens Creek" or the "Group")

Purchase of a second highwall miner for Bens Creek

Bens Creek Group plc (AIM:BEN), the owner of a recently re-opened metallurgical coal mine in North America supplying the steel industry, is pleased to announce that Ben's Creek Operations WV LLC, a wholly owned subsidiary of the Group, has, on 17 January 2022, entered into a contract to purchase a Superior highwall miner and related highwall mining equipment for use at the Bens Creek mine, ahead of the Group's preliminary date of deployment in the second quarter of 2022. 

The highwall miner and associated equipment is anticipated to be delivered in February 2022 and complements the successful implementation of the first highwall miner operated by Mega Highwall Mining LLC ("MHW") pursuant to the contract mining services agreement with MHW, details of which were announced by the Group on 29 October 2021. The capacity of the Superior highwall miner being acquired is broadly in line with the highwall miner operated by MHW. It is expected that MHW will operate the equipment being acquired.

The purchase price of the second highwall miner and related equipment is US$2,500,000 with $100,000 being payable on signing of the agreement and the balance to be paid within 30 days. The purchase price of the highwall miner is being funded from the Group's available cash resources.

Adam Wilson, CEO of Bens Creek, said: "I am delighted we are buying this highwall miner, rather than renting it, as we have been able to negotiate attractive commercial terms. The potential to double our production capability in such a short period of time since the commencement of initial coal production will provide increased operational capacity as we seek to increase levels of production from the Bens Creek mine and in turn gives us the ability to boost revenue generation."

For further information please contact:

Bens Creek Group plc Adam Wilson, CEO Raju Haldankar, CFO	[phone]
Allenby Capital Limited (Nominated Adviser and Joint Broker) Nick Athanas Nick Naylor George Payne	[phone]
Optiva Securities Limited (Joint Broker) Christian Dennis Jeremy King Daniel Ingram	[phone]

 

END

 

 

MSCBRMJTMTMBTPT