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.