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Allegiance makes a play for Canadian firm

16th September 2016

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed junior Allegiance Coal has moved to acquire a private Canadian company in a deal valued at A$1.25-million.

Allegiance told shareholders on Friday that it had entered into a conditional binding agreement to acquire Telkwa Coal, whose sole asset is a farm-in agreement over an advanced coking coal exploration project in British Columbia.

Under the terms of the acquisition, Allegiance would issue 50-million of its own shares, at a price of 2.5c each.

The share issue would be subject to shareholder approval, and would likely be completed by the end of November.

The acquisition is subject to a number of conditions, including Allegiance completing a A$1-million capital raise and the consolidation of Allegiance’s share capital on a five-for-one basis.

Telkwa’s coal project is currently estimated to host a 165-million-tonne resource, of which 89-million tonnes are in the measured category.

Edited by Creamer Media Reporter

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