(Alliance News) - Bens Creek Group PLC on Friday said it has raised GBP7.0 million through a placing as part of its float on the AIM market of the London Stock Exchange, which will take place on Tuesday next week.
Bens Creek operates a metallurgical coal mine located on 10,000 acres in the southern part of the state of West Virginia, and the company is expected to have a market capitalisation of GBP35.0 million.
Proceeds from the placing, at a price of 10 pence per share, will go towards financing Bens Creek's mining operations, including the refurbishment of the coal's preparation plant and railroad, infrastructure repair and the acquisition of mining equipment.
The mine has estimated coal resources of 17.2 million in-place tonnes and proven and probable recoverable coal reserves of 2.3 million tonnes.
Allenby Capital Ltd and Optiva Securities Ltd acted as joint broker, and Clear Capital Markets Ltd as placing agent.
"Upon admission we expect the business to have low levels of debt combined with robust operating margins, and we expect to generate significant operating cash flows from our operations by utilising contract miners who will supply labour, equipment, and materials. There are already several active mining contractors in the state of West Virginia, and we intend to commence operations in Q4 2021, which will help to create employment and stimulate the local economy," said Chief Executive Officer Adam Wilson.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Bens Creek (BEN)