Bens Creek Group PLC (AIM:BEN, OTC:BENCF) has agreed on a deal to sell its own highwall coal miner for a cash consideration of US$3.6mln to Civil, a Georgia-based company.
The miner had already flagged it was looking at the options for its #20 machine having accessed two other miners through its agreement with its contractor Mega Highwall.
Bens Creek added that #20 had a book value of US$2.7mln in March, having originally been bought for US$2.5mln.
Some US$2mln of the sale proceeds will be used to repay a financing facility with the remainder to provide additional working capital.
Civil is also buying three trucks for US$300,000 cash.
In a statement, Adam Wilson, Bens Creek’s chief executive commented: “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.”