Marketing and sales services agreement with Avani

Bens Creek Group PLC

26 July 2023

 

Certain information contained within this Announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 ("MAR") as applied in the United Kingdom. Upon publication of this Announcement, this information is now considered to be in the public domain.

26 July 2023

Bens Creek Group plc

("Bens Creek" or the "Company")

 Marketing and sales services agreement with Avani

Bens Creek Group plc (AIM:BEN), the owner of a metallurgical coal mine in North America supplying the steel industry, has, on 25 July 2023, entered into a non-exclusive marketing and sales services agreement (the "Marketing Agreement") with Avani Resources Pte Ltd ("Avani"), the Company's largest shareholder.

Terms of the Marketing Agreement

Under the terms of the Marketing Agreement, Avani shall market coal produced by Bens Creek. The Company has, until now, undertaken all of its coal sales through Integrity Coal Sales, Inc. New York ("Integrity"). Under the Marketing Agreement Avani will bid for product from the Company on similar terms to that currently offered by Integrity.

Bens Creek and Avani shall negotiate in good faith and enter into a separate sale agreement for the sale and purchase of each parcel of coal. Bens Creek and Avani shall mutually discuss and agree the commercial terms and conditions for each such sale agreement.

The Company and Avani may terminate the Marketing Agreement on three months' prior written notice to the other party and the Marketing Agreement shall be terminated automatically if Avani is no longer a shareholder in Bens Creek.

Related party transaction

Bens Creek entering into the Marketing Agreement with Avani is deemed to be a transaction with a related party pursuant to rule 13 of the AIM Rules for Companies by virtue of Avani being a 29.86% shareholder of the Company. The directors of the Company (who are all independent of Avani) consider, having consulted with the Company's nominated adviser, Allenby Capital Limited, that the terms of the Marketing Agreement with Avani are fair and reasonable insofar as the Company's shareholders are concerned and as such have approved the Company entering into the Marketing Agreement.

Adam Wilson, Chief Executive Officer of Bens Creek, commented:

"We have been examining the possibility of expanding our sales channels which to date has been driven exclusively through our offtake partner Integrity. We have been very pleased with the service provided by Integrity and we will continue to utilise their services. The addition of Avani, who bring tremendous subcontinent expertise (in particular in India, which is set to become the World's largest market), will provide us with both competition for our product and greatly increase exposure of Bens Creek coal within our target market."

For further information please contact:

Bens Creek Group plc Adam Wilson, CEO Peter Shea, Chief of Staff		[phone]
Allenby Capital Limited (Nominated Adviser and Joint Broker) Nick Athanas / Nick Naylor / George Payne (Corporate Finance) Kelly Gardiner (Sales and Corporate Broking)	[phone]
WH Ireland Limited (Joint Broker) Harry Ansell / Katy Mitchell		[phone]

 

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