LONDON (Alliance News) - Egdon Resources PLC and Alkane Energy PLC said Monday that they are in advanced discussions regarding a potential transaction of Alkane's shale assets for Egdon shares.
Accompanying the proposed transaction, Egdon has proposed a GBP7 million fundraising for working capital purposes, expected to be implemented through a placing of GBP6.4 million and an open offer for GBP600,000.
In separate statements released in tandem following press speculation, the companies said Monday that they are in advanced discussions over a potential transaction involving an acquisition of Alkane's onshore shale assets for 40,000,000 ordinary shares in Egdon.
The firms said the transaction and Egdon's fundraising remain subject to finalisation and that the potential transaction is expected to be conditional on approval of the fundraising by Egdon shareholders.
Shares in Alkane were trading 4.29% higher at 42.5 pence per share, Egdon shares were 1.22% higher at 20.75 pence per share.
By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance
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