(Alliance News) - Bens Creek Group PLC on Monday said it agreed repayment terms with its lender ACAM LP regarding USD6 million in outstanding unsecured convertible loan notes.
The mining company focused on North America said the notes were issued to ACAM earlier this month, which are now set to be redeemed via a series of monthly instalments.
Under the repayment plan, Bens Creek said it would make a USD250,000 payment to ACAM on or before Tuesday, with subsequent monthly repayments to be made from operational cashflow. It expects this will result in the full repayment of USD6 million plus accrued interest by the end of the summer this year.
This refers to a second set of convertible loan notes. Following repayments, ACAM will still hold USD6 million of convertible loan notes, referring to the first set announced in mid-December.
"We have been extremely pleased with the support offered by ACAM as we have reconstructed the business. We are now approaching full production and as such our operational cash flows enable us to commence paying down loan obligations," said Bens Creek Chief Executive Officer Adam Wilson.
Shares in Bens Creek were up 2.5% to 20.50 pence each in London on Monday at midday.
By Greg Rosenvinge, Alliance News reporter
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Bens Creek (BEN)