LONDON, UK: Bens Creek Group (AIM:BEN), the proprietor of a metallurgical coal mine in North America supplying the metal industry, announces the proposed sale of its personal highwall miner (#20) to Civil LLC for a complete money consideration of $3.6 million.
Civil LLC is a Georgia restricted legal responsibility company, authorised to conduct mining business within the state of West Virginia, USA.
Further to the Company’s mining replace launched on 7 November 2022, the place Bens Creek stated it was reviewing its choices with regards to its owned highwall miner and it had received offers which were under consideration, the Company has now agreed the proposed sale of the highwall miner with Civil LLC.
The Company continues to have entry to 2 highwall miners through its highwall mining contractor, Mega Highwall Mining LLC (“MHW”). The first highwall miner is presently being deployed on the Bens Creek site on the brand new permitted space and the second highwall miner is anticipated to be in place on-site in January 2023. These two highwall miners from MHW are sufficient to support the Company’s manufacturing plans for 2023.
The money consideration will be paid to Bens Creek by Civil LLC in month-to-month instalments through to July 2023. The Company initially bought highwall miner #20 for a consideration of $2.5 million in money in February 2022 and it had a book worth of $2.7 million as at 31 March 2022 as set out within the Company’s audited accounts for the year ended 31 March 2022.
As beforehand introduced the Company, separately, acquired its preliminary fleet of mining and earth moving equipment in August 2022 which was subsequently financed by an equipment financing facility with McGinty Road Partners LP (“McGinty”) and which totals $6.1 million as detailed within the Company’s recent interim results. As a half of this financing McGinty took a lien over the Company’s highwall miner and, as a result, c.$2.0 million of this facility will be repaid to McGinty from the proceeds of the sale of the highwall miner. The balance of the funds from the sale of the highwall miner will be utilized by the Company for general working capital and operational purposes.
Ownership of the highwall miner shall stay with Bens Creek till the payment obligations of Civil LLC have been met in full.
In addition, as a half of the sale of the highwall miner, the Company has additionally sold three 777C CAT 100-ton rock trucks to Civil LLC for a complete consideration of $300,000 payable in money instalments over a interval of three months.
Adam Wilson, Chief Executive Officer of Bens Creek, commented: “Having negotiated efficiently with MHW for the provision of a second highwall miner the necessity for us to personal a machine has been reduced and as such a sale appeared the suitable course of action. We are happy to have achieved a positive result within the disposal.”