Bens Creek Group PLC (AIM:BEN, OTC:BENCF) said chief executive Adam Wilson is to stand down as chief executive while it has arranged a new loan with major shareholder Avani to give it additional working capital.
West Virginia experienced severe weather conditions at the start of the year, Bens Creek said, and its operation was hit by a short period of unexpected interruption to production due to an issue with waste disposal and refuse cells at the mine.
While the mine is back in production, several trains scheduled to collect contracted coal sales were delayed, resulting in a substantial backlog of coal delivery since the start of the year, said the statement.
A coal order of 33,000 tonnes with Avani was fulfilled, but the delays meant more working capital being utilised than expected.
Avani has provided US$1.25 million in the short term and is in discussions with Bens Creek about a US$5 million additional working capital facility.
Amendments to the existing US$6.5 million loan facility with Avani put in place in July 2023 will be part of this arrangement, said the statement.
Talks are also advanced with Avani over a non-exclusive offtake arrangement for the delivery of a total of circa 400,000 short tons of coal commencing in the next couple of months.
Bens Creek added that Wilson will leave once a replacement is found.