Altona Energy makes Cheerful acquisition

AIM-listed Altona Energy has completed the acquisition of the entire issued share capital of Cheerful Jade Investment Holdings, therby securing an indirect 95 per cent beneficial interest in an advanced coal exploration licence located in the Xinjiang Autonomous region of the People's Republic of China.

Under the deal the company also has an option to acquire a further advanced coal exploration licence, also in the Xinjiang region.

Altona anticipates that production and revenues from sales to local markets at profitable prices will start flowing next year as soon as post winter conditions allow and that these profits will mitigate the need to raise funds from shareholders. The company is hoping to fast-track the projects into production to achieve this.

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Altona will pay £3.825m in cash over three instalments over as many years, as well as £2.625m and 20m shares at betweeen 10p and 20p for each licence.

The share price rose 3.57% to 3.62p by 15:16.

NR