Bens Creek Group PLC (AIM:BEN, OTC:BENCF), the owner of a metallurgical coal mine in North America, is to issue a second convertible loan note to raise US$6mln.
The terms of the convertible loan note (CLN) are broadly the same as the first convertible loan note issued by the company on 14 December 2021, apart from the conversion price, which is set at 40p per new ordinary share, and the rate of interest, which is reduced to 12% a year from 15%.
READ Miner Bens Creek raises US$6mln to fund its acquisition aspirations
Funds from the loan note issue, all of which have been provided by ACAM, will mostly be used to finance future acquisition opportunities.
The company said it is in active discussions on a number of possible acquisitions but no terms have been agreed upon.
"This funding will provide us with the financial strength to make focussed added value acquisitions. The conversion price of the second CLN at 40p is at a significant premium to both the IPO issue price of 10p in October 2021 and the 28p conversion price of the first CLN issued on 14 December 2021 which, the board believes, demonstrates ACAM's investment appetite, confidence and support for the company,” said Adam Wilson, the chief executive officer of Bens Creek.
"Having moved into initial production at the existing Bens Creek site in West Virginia at the beginning of December 2021 and subsequently completed first deliveries to our offtake partner, Integrity Coal Sales, Inc. the focus of the Bens Creek management team and operational staff remains to make further progress with production and enhance our programme of shipping metallurgical coal,” he added.
Shares in Bens Creek Group PLC (AIM:BEN, OTC:BENCF) now trade at 46.75p, down 1.25p on the day.
The company also announced it has received notice of the exercise of warrants to subscribe for 600,000 new shares of the company at 10p a pop.
The exercise of these warrants, which were issued to Clear Capital Markets Limited, will generate proceeds of £60,000 for the company.