Bens Creek has put its mine operation in West Virginia onto care and maintenance due to the impact of a low metallurgical coal price and financial constraints.
BC Operations, the subsidiary operating the mine, has laid off 44 employees comprising a substantial number of the employees at the site, the group stated.
Avani Resources, the company's largest shareholder, main offtake partner and lender, is currently in discussions with Bens Creek on the terms to provide additional financial support to the company. A term sheet to this effect is being reviewed by the company's legal counsel.
Any such agreement with Avani will likely constitute a related party transaction under AIM rules.