Bens Creek Group PLC (AIM:BEN), the owner of a metallurgical coal mine in North America, plans to raise £7.0mln on admission to London’s Alternative Investment Market later this month, giving it a market capitalisation of £35.0mln.
The mine has estimated coal resources of 17.2 million in-place tons and proven and probable recoverable coal reserves of 2.34 million tons, comprising the coal reserves at the Lower Alma and Pond Creek mines. It is located in the southern part of West Virginia and the eastern edge of Kentucky, in the central Appalachian Basin.
It expects to be admitted to AIM on 19 October.
Historically high quality Hi-Vol-A and Hi-Vol-B metallurgical coal, used in steelmaking, has been produced from the mine.
The funds raised on admission to AIM will be used to finance the company’s mining operations, including the refurbishment of the coal preparation plant and railroad, infrastructure repair, the acquisition of mining equipment, working capital and repay some short-term debt facilities.
Mining operations and production is expected to begin in the fourth quarter of 2021.