Advertisement

Alkane Energy buys coal mine methane assets from Maltby Colliery

Alkane Energy has agreed to acquire coal mine methane (CMM) assets from Maltby Colliery, a subsidiary of Hargreaves Services.

Alkane Energy has agreed to acquire coal mine methane (CMM) assets from Maltby Colliery, a subsidiary of Hargreaves Services.

The company is paying an initial consideration of £5.5m cash with an additional £2.0 payable upon completion of the full closure of the mine which is expected in first half of 2014.

Advertisement - Article continues below

Alkane said the acquisition will significantly increase its installed electricity generating capacity from CMM, operational assets and cash flow.

The group has raised £6.0m through the placement of over 22m shares which will be used to fund the acquisition. An extension of bank facilities by £3.5m with Lloyds TSB Bank will also help finance the deal.

"This latest acquisition consolidates Alkane's market leading position in CMM and it adds significantly to the group's core CMM operating capacity and provides an opportunity to further develop our Power Response business," said Chief Executive Officer of Alkane, Neil O'Brien.

"Investor support for the placing demonstrates commitment to Alkane's growth strategy. We are committed to continue to develop the group as the UK is beginning to see a tighter generating market and rising electricity prices."

Shares rose 1.29% to 29.50p at 10:03 Wednesday.

RD

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

BP has slashed its dividend – and markets love it
Income investing

BP has slashed its dividend – and markets love it

BP has bowed to the inevitable and cut its dividend in half – and its share price promptly rose. John Stepek explains what it means for shareholders …
4 Aug 2020
Listed companies are dying out, and that could have serious consequences
Stockmarkets

Listed companies are dying out, and that could have serious consequences

Private equity is taking over from public stockmarkets as the biggest provider of capital to companies. That’s bad for investors and bad for society a…
3 Aug 2020
Can the recent rally in sterling continue?
Sponsored

Can the recent rally in sterling continue?

A "double top"  – a very recognisable pattern – is forming in in the US dollar. Dominic Frisby explains what it is, and what it could tell us about st…
3 Aug 2020