Bens Creek Group PLC - operates metallurgical coal mine in US state of West Virginia - Intends to raise GBP6.0 million through placing of 10.0 million shares at a price of 30 pence per share, and subscription by certain investors for another 10.0 million shares at the same price.
Investors includes MBU Capital Group Ltd, Mohammed Iqbal and Bluestar Global Capital Ltd.
Issue price reflects a 10% discount to the Bens Creek's closing price on Wednesday of 33.50p.
Proceeds from the fundraise will go towards the transition from a contractor model concerning equipment, to owning and operating its own mining equipment.
This will involve paying purchase deposits for the required equipment which will be supplied by Komatsu.
"When we listed on AIM, we had no choice but to engage a contractor to help us with this advancement, however as we now look to exceed the initial monthly production target of 40,000 and move towards our target of circa 70,000 - 80,000 tons per month, as previously announced, it is important that we own the equipment fleet so that we are able to keep at least two highwall miners operational simultaneously," said Chief Executive Officer Adam Wilson.
Current stock price: 31.75 pence, down 5.2% on Thursday
12-month change: up sharply from 10.50p as at Oct 20
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Bens Creek (BEN)