LONDON (Alliance News) - Wildhorse Energy Ltd Monday said it is considering what to do with its uranium and underground coal gasification assets and the implications for its ongoing rights issue, after it said that Linc Energy Ltd had told it that no longer wants talks or to complete the planned purchase of Wildhorse's coal assets.
In late July the company had said it was still hopeful of doing a deal with Linc Energy, even though the deadline for the potential deal to sell the coal assets in Hungary to Linc Energy passed. The two sides signed a memorandum of understanding in February after Wildhorse ran out of money to fund its administrative and exploration plans for the next year.
At that time, Wildhorse also extended the closing date of its AUD1.4 million rights issue offer to August 13, from July 24, to give shareholders more time to respond.
"AIM and ASX listed Wildhorse Energy announces that the Singapore Exchange listed Linc Energy Ltd has advised the company that it no longer wishes to proceed with any further discussions or completion of the coal sale transaction contemplated by the Heads of Agreement," Wildhorse said in its statement Monday.
"The company is currently assessing alternative options in respect of both the uranium and UCG assets. Due to the Linc Energy transaction not proceeding the company is considering the implications for the current rights issue. To this end, the company will provide an update to the market shortly," it added.
Wildhorse Energy shares were down 2.1% at 0.416 pence on AIM Monday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
Copyright 2014 Alliance News Limited. All Rights Reserved.