(Alliance News) - Bens Creek Group PLC on Thursday said it is selling its highwall miner for USD3.6 million to Civil LLC.
The owner of a metallurgical coal mine in the US state of West Virginia supplying the steel industry said the cash consideration would be paid in monthly instalments through to July 2023, adding that it had agreed to the sale after considering a number of offers.
Civil is a mining company with operations in Virginia, USA.
The company purchased the highwall miner in February 2022 for a consideration of USD2.5 million in cash, and it had a book value of USD2.7 million at March 31.
Bens Creek said it still has access to two highwall miners through its highwall mining contractor Mega Highwall Mining LLC. The first miner is currently being deployed on the Bens Creek site, with the second highwall miner set to be in place bin January 2023.
The company said these two highwall miners are "sufficient to support the Company's production plans for 2023". The highwall miner will remain under Bens Creek's ownership until Civil has met the payment obligations in full.
Chief Executive Officer Adam Wilson said: "Having negotiated successfully with MHW for the provision of a second highwall miner the need for us to own a machine has been reduced and as such a sale seemed the appropriate course of action. We are pleased to have achieved a positive result in the disposal."
The company also said it has sold three 777C CAT 100-ton rock trucks to Civil, for a total consideration of USD300,000 payable in cash instalments over three months.
Bens Creek Shares were up 1.2% trading at 21.50 pence each at midday on Thursday in London.
By Harvey Dorset, Alliance News reporter
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Bens Creek (BEN)