Bens Creek Signs Marketing Agreement with Shareholder Avani
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Bens Creek Group, the North American metallurgical coal mine owner supplying the steel industry, has entered a non-exclusive marketing and sales services agreement with Avani Resources, its largest shareholder.
Avani will market coal produced by Bens Creek, which previously sold all its output through Integrity Coal Sales.
Avani will bid for the company’s product on similar terms offered by Integrity.
Both companies will negotiate separate sale agreements for each coal parcel, agreeing on commercial terms and conditions per sale.
“We have been examining the possibility of expanding our sales channels which to date has been driven exclusively through our offtake partner Integrity. We have been very pleased with the service provided by Integrity and we will continue to utilize their services,” said Bens Creek CEO Adam Wilson.
“The addition of Avani, who bring tremendous subcontinent expertise (in particular in India, which is set to become the world’s largest market), will provide us with both competition for our product and greatly increase exposure of Bens Creek coal within our target market,” added Wilson.
The agreement can be terminated with three months’ written notice or if Avani ceases to be a Bens Creek shareholder.
Source: Proactive Investors
Bens Creek Group is an AIM listed holding company set up to own and operate metallurgical coal mines in North America. The company owns the Ben’s Creek mining project in West Virginia.
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