This announcement contains inside
information for the purposes of Article 7 of Regulation (EU) No
596/2014 which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018.
21 May 2024
Bens Creek Group
plc
("Bens Creek" or the
"Company")
Redemption Notice received
from Avani in relation to Avani Loan Notes
Bens Creek Group plc (AIM:BEN), the
owner of a metallurgical coal mine in North America supplying the
steel industry, announces that on 20 May 2024 it received a
redemption notice (the "Redemption
Notice") from Avani Resources Pte Ltd ("Avani"), the Company's largest
shareholder. The Redemption Notice is for the redemption of the
principal and outstanding interest pursuant to the c.$6.5 million
of unsecured loan notes (the "Avani Loan Notes") the Company issued
to Avani, details of which are set out in the Company's
announcement on 7 July 2023. The Redemption Notice identifies
several events of default under the terms of the Avani Loan Notes.
As of 20 May 2024, c.$6.2 million of the Avani Loan Notes remain
outstanding along with c.$0.84m of accrued interest.
As previously announced on 9 May 2024,
the Company has a cash runway until the end of May 2024 and
consequently the Company is severely cash constrained. In addition,
as announced on 16 May 2024, the Company has also received a
redemption notice from ACAM LP ("ACAM") in relation to its c.$7.57
million unsecured loan note.
Due to this cash constraint, the
Company is unable to repay either the amounts due to Avani under
the Avani Loan Notes or the amounts due to ACAM pursuant to their
unsecured loan note. Accordingly, the Board of the Company (the
"Board") continues to
consider options available to the Company, which may include the
Board deciding to file notice to appointment administrators to the
Company.
The Company's shares remain suspended
from trading on AIM.
Further announcements will be made by
the Company at the appropriate time.
For
further information please contact:
Bens
Creek Group plc +44
(0) 204 558 2300
Adam Wilson, CEO
Peter Shea, Chief of Staff
Allenby Capital Limited (Nominated Adviser and Joint
Broker) +44
(0) 203 328 5656
Nick Athanas / Nick Naylor / George Payne (Corporate Finance)
Kelly Gardiner / Guy McDougall (Sales and Corporate
Broking)
WH
Ireland Limited (Joint Broker)
Harry Ansell / Katy Mitchell
+44
(0) 207 220 1666