Bens Creek said it has issued roughly £5.89mln in unsecured loan notes to ACAM LP, a natural resource company.
The owner of a metallurgical coal mine in North America said the loan notes have cancelled the US$6mln of convertible loan notes issued in December 2021 that were due for repayment in December this year.
According to a statement, the loan notes are not convertible into new ordinary shares and have a term of 18 months.
Bens Creek has also issued roughly 21mln warrants to subscribe for new ordinary shares to ACAM, exercisable at 28p per share, with a life of five years and can be exercised at any time.
"The provision of early financial support by ACAM was instrumental in allowing the company to enhance its earthmoving fleet and to substantially complete the initial necessary bench construction to support our high wall miner,” said Bens Creek CEO Adam Wilson.
“We are pleased that we have been able to successfully repay in full the CLNs due this summer (announced on 7 July 2023) and we are delighted that ACAM have shown further confidence in the company by entering into these new loan arrangements,” Wilson added.