Bens Creek Group PLC (AIM:BEN, OTC:BENCF) announced that it is to acquire a further 26% of the membership interests of BC Rail Holding, through its wholly owned subsidiary, Ben's Creek Carbon LLC, for a cash payment of US$169,000, taking its ownership to 52%.
The owner of a metallurgical coal mine in North America supplying the steel industry said the consideration is being satisfied from the company's existing cash resources.
Bens Creek has the right to acquire 100% of BC Rail Holding under the terms of an agreement with MBU Capital Group Ltd for a total consideration of US$650,000.
Following this latest transaction, Bens Creek will retain the right to acquire the remaining 48% from MBU for a total further consideration of US$312,000, to be satisfied in two tranches.
Since 1 April 2022, Bens Creek and MBU have, as previously announced, taken various steps to achieve a separation between the two companies. The additional acquisition of membership interests in BC Rail Holding is a continuation of this separation strategy.
In a statement, Adam Wilson, chief executive officer of Bens Creek, commented: "As part of the continued effort to create separation between Bens Creek and MBU we are pleased to have now acquired the majority of Ben's Creek Rail Holdings."