Alkane Energy Plc. (ALK.L) said that it has conditionally agreed to acquire certain of the coal mine methane assets of Maltby Colliery from Maltby Colliery Ltd, a wholly owned subsidiary of Hargreaves Services plc (HSP.L).
The initial consideration for the acquisition of the Maltby Asset is 5.5 million pounds, payable in cash, with an additional payment of 2.0 million pounds payable, upon completion of the full closure of the mine, expected to be during the first half of 2014.
Alkane also announced that the Company has, via a cash box placing , conditionally raised 6.0 million pounds (gross) and agreed to issue and allot 22,222,223 ordinary shares of 0.5 pence each in the capital of the Company. The Placing Shares were placed at a price of 27 pence per share.
Alkane stated that the initial consideration of the Acquisition will be funded through an extension of existing bank facilities provided at the time of the Acquisition along with the net proceeds of the Placing. Excess financing will be used to provide additional working capital to support the continued investment by the Group in its core gas to power activities.
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