Egdon Resources comments on Alkane Energy's onshore shale assets
Egdon Resources plc (AIM:EDR) notes the press commentary on Saturday 10 May and confirms it is in advanced discussions with Alkane Energy on a potential transaction involving an acquisition of Alkane’s onshore shale assets for 40,000,000 ordinary shares in Egdon with an accompanying fundraising of £7 million at 20 pence per share for working capital purposes. The fund raise is expected to be implemented via a placing of £6.4 million and an open offer of £600,000.
The potential transaction and fundraising remain subject to finalisation. The potential transaction is expected to be conditional on approval of the fundraising by Egdon shareholders. An announcement will be made in due course.