Bens Creek Group has raised fresh capital ahead of its expected flotation on the London Stock Exchange’s junior market.
The metallurgical coal miner placed £7.0m-worth of shares, before expenses, at 10.0p each ahead of its expected admission to trading on AIM next 19 October.
That placing was conditional on its admission to trading and was expected to result in a £35.0m market capitalisation for the company.
Company boss, Adam Wilson, said: “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.
“[…] The macro picture currently looks favourable, with strong global demand for steel, not least in the US, where President Biden announced early this year a $2 trillion plan to overhaul and upgrade the nation’s infrastructure, including plans to spend on roads, bridges and other physical improvements.”
The miner’s operations were based mainly in Mingo County, West Virginia, in the central Appalachian Basin of the eastern US.
Its main objective following admission will be to restore production from its underground Pond Creek Mine by the tail end of 2021.
Bens Creeks’ other main asset was the surface Lower Alma Lower Bench Mine.
Estimated coal resources in place were said to be 17.2m in-place tons for proven and probable recoverable coal reserves of 2.34m tons.
The company also left the door open to further acquisitions of metallurgical coal mines in North America.
