Talon Energy talks deal with TMK for Gurvantes project

October 16, 2023 at 14:30 PM EDT

--News Direct--

Talon Energy Ltd (ASX:TPD) managing director Colby Hauser tells Proactive the company and TMK Energy Ltd have agreed to consolidate the ownership of the Gurvantes XXXV coal seam gas project in Mongolia, which will see TMK acquire Talon's 33% earned interest in the project. Both parties have executed a binding heads of agreement for the transaction which has been described as a logical transaction and compelling opportunity to create shareholder value. The gross consideration for Talon's earned rights will involve up to 1.10 billion fully-paid ordinary shares in TMK and up to 550 million listed options in TMK, which will be distributed to Talon shareholders following completion of the transaction.

“This consolidation is a logical transaction and compelling opportunity to create value for both sets of shareholders by unlocking important synergies in the exploration and development of the Gurvantes Project,” Hauser said.

“Assuming the TMK transaction completes, Talon shareholders will continue to have a material interest in the upside associated with Gurvantes, while at the same time mitigating the liquidity and funding risks that would have existed in the unlisted spin-out structure.

“The Talon board believes that the TMK transaction is in the best interests of Talon shareholders and unanimously recommends it to our shareholders.”