22nd Jul 2014 10:04
LONDON (Alliance News) - Wildhorse Energy Ltd Tuesday said that despite the expiry date to finalise its planned Hungarian assets disposal being met, it remains in talks with Linc Energy Ltd to complete the transaction.
The developer of underground coal gasification and uranium projects in central Europe said the expiry date of midnight July 21 has been reached without extension regarding the sale of its Hungarian coal assets to the Singapore Exchange listed Linc Energy for a consideration of the equivalent of AUD4.0 million in shares in Linc Energy.
However, the company said that it continues to talk with the parties involved in the deal in the hope that the transaction can be completed.
Wildhorse entered the deal back in February in a move it said it was making to fund its operations as it didn't have enough money to meet its minimum committed administrative and exploration expenditure for at least 12 months.
The company said that, as part of a funding agreement linked to the asset sale, Linc has already provided Wildhorse with AUD400,000 as a contribution towards the company's costs.
Wildhorse on Monday said that it had extended the closing date of a planned AUD1.4 million rights issue offer by 14 business days, to August 13 from July 24, in order to give shareholders more time to respond.
The extension came after Wildhorse last month said it is to raise up the cash before costs in a rights issue, with the money earmarked for the development of existing products. It also wants to use the funds to identify and evaluate new uranium and other resource projects.
The company said on Tuesday that it continues to be conscious of costs and accordingly, until the board receives more clarity on the potential sale to Linc Energy, the company is continuing to reduce all underground coal gasification related expenditure.
Wildhorse shares were quoted flat at 0.450 pence on Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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