Greenland Energy (NASDAQ:GLNDW) and 80 Mile (LSE:80M) have agreed indicative terms for a proposed all-share merger under which Greenland Energy would acquire 80 Mile.
The proposed transaction values 80 Mile at approximately £61.48 million and represents a premium of more than 40% to recent trading levels, according to the terms outlined by the companies.
Greenland Energy and 80 Mile are existing joint venture partners in the Jameson Land Basin in Greenland. If completed, the transaction would consolidate 100% ownership of the Jameson Land licences within a single Nasdaq-listed company.
Proposed Transaction Remains Subject to Pre-Conditions
The companies said the proposed merger remains subject to several pre-conditions, including satisfactory mutual due diligence and approval by the relevant independent directors.
There is no certainty that these conditions will be satisfied or that Greenland Energy will proceed with a firm offer for 80 Mile.
Under the proposed all-share structure, 80 Mile shareholders would receive shares in the combined U.S.-listed group, retaining exposure to the assets through their ownership in Greenland Energy.
The companies said a combination would bring together 80 Mile’s portfolio with Greenland Energy’s cash resources, capital markets access and operating platform. The transaction could also allow overlapping corporate functions to be consolidated, although the potential benefits remain dependent on completion and subsequent implementation.
Merger Would Consolidate Jameson Land Ownership
The Jameson Land Basin is currently held through the existing relationship between Greenland Energy and 80 Mile.
Greenland Energy has rights to earn a 70% working interest across approximately 2.1 million acres by funding initial wells. A completed acquisition of 80 Mile would bring the Jameson Land licence interests under one corporate structure.
Greenland Energy recently completed a US$70 million offering, providing additional capital for its activities.
Independent engineering work cited by the company has identified approximately 13 billion barrels of prospective recoverable oil resources at Jameson Land. These figures represent prospective resources rather than established reserves or production.
More about 80 Mile plc and Greenland Energy
80 Mile plc is a London-listed exploration and development company with energy, critical minerals and industrial gas projects in Greenland, Finland and Italy.
Its portfolio includes the Jameson Land Basin gas and liquids project, the Disko-Nuussuaq copper-nickel-cobalt-PGM project, the Dundas Ilmenite mineral sands project and interests in industrial gases and biofuels in Italy.
Greenland Energy is a Nasdaq-listed energy exploration company focused on the Jameson Land Basin in East Greenland. Its activities centre on the exploration and potential development of the basin’s hydrocarbon resources.
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