LONDON, UK: Bens Creek (AIM:BEN), the owner of a metallurgical coal mine in North America supplying the steel industry, has announced that Avani Resources Pte Ltd (“Avani”), a Singapore-based commodities trader and investor, has acquired a 29.86 per cent. stake in the company from its largest shareholder, MBU Capital Group Limited (“MBU”).

The transaction was undertaken on 10 May 2023 at a price of 18p per share, valuing the deal at £21.5 million. The transaction was conducted off-market and will settle on 12 May 2023.

Avani is a private limited company incorporated in Singapore and is a trader of commodities to be used in energy and infrastructure industries as well as making investments in related assets.

Avani mainly deals with physical trading of raw material for steel and power production, namely coal, steel, ferroalloys, metals and ores.

Avani is a supplier of metallurgical coal to India and China and buys from a large range of coking coal exporting regions including Australia, Africa, the United States, Canada, China and Indonesia.

Avani caters for customers across the iron and steel industries, from standalone pellet producers, special and alloy steel producers to very large integrated steel mills.

The board of Bens Creek welcomed the investment by Avani and said it looked forward to working with them to grow the business. Bens Creek owns the Poplar Grove mine in Kentucky, which produces high-quality metallurgical coal for the global steel industry.

The company also owns the Cypress mine project, which is adjacent to Poplar Grove and has similar coal quality characteristics.

Following the transaction, Avani will hold 119,218,394 ordinary shares in Bens Creek, representing approximately 29.86 per cent. of the current issued share capital of the company. MBU will continue to hold 94,944,813 ordinary shares in Bens Creek, representing 23.78 per cent. of the current issued share capital of the company. In addition, Mohammed Iqbal, MBU’s ultimate beneficial owner, holds 3,333,336 ordinary shares in Bens Creek, representing 0.83 per cent. of the current issued share capital of the company.

VINCI acquires 55% Stake in Entrevias, securing concession for Brazil’s toll motorway sections

Bens Creek Group announces proposed sale of highwall miner to Civil LLC