Bens Creek Group PLC (AIM:BEN, OTC:BENCF) said it has started to repay its loan commitments as it near full production at its metallurgical coal mine in West Virginia.
Terms have been agreed with ACAM for the repayment of US$6mln of outstanding unsecured convertible loan notes (Second CLN) issued a year ago.
Under the plan, a first payment of US$250,000 will be made to ACAM on or before 28 February 2023 with subsequent monthly repayments to be made from operational cashflow.
Bens Creek said it expects full repayment of the US$6mln principal and accrued interest on the Second CLN will be completed by the end of summer this year (2023).
Following repayment of the Second CLN, ACAM will still hold US$6mln of convertible loan notes (First CLN).
Adam Wilson, Bens Creek chief executive, said: "We have been extremely pleased with the support offered by ACAM as we have reconstructed the business.
“We are now approaching full production and as such our operational cash flows enable us to commence paying down loan obligations. This is the first step towards full repayment of all our loan arrangements."
Separately, the miner said Mark Cooper has joined the board as a non-executive director and the representative of MBU, its major shareholder, where he is Group General Counsel.