Bens Creek Group PLC (AIM:BEN, OTC:BENCF) has executed an agreement with Avani Resources, its largest shareholder, for the delivery of 400,000 (give or take 10%) short tons of High Vol B metallurgical coal.
Delivery is expected to be made over 12 months, subject to any train delays, starting from 1 April unless otherwise mutually agreed between Bens Creek and Avani.
The intention is to supply three to five trains per month subject to levels of coal production and train availability, added the West Virginia-based coal miner.
Bens Creek added that the coal is being purchased by Avani at a price that will be in line with the prevailing market rates for the sale and purchase of High Vol B coal.
The agreement, which is a non-exclusive contract, also allows the company to place up to 240,000 (give or take 10%) additional short tons with other buyers on the same terms and conditions.
Adam Wilson, Bens Creek’s chief executive, said: "We are delighted to announce this offtake with Avani which, alongside the appointment of Chris Walker, should see the company continue its journey to being a significant producer in both the domestic and international marketplaces."