wildhorse scores deal with linc energy

Wildhorse scores deal with Linc Energy, losses widen
6 hours ago



LONDON (ShareCast) - Wildhorse Energy (WHE) has announced that it has signed a deal with Linc Energy (Other OTC: LNCGY - news) to acquire all of the company's underground coal gasification (UCG) assets.

The AIM-listed group, which is focused on developing UCG and uranium projects in Central and Eastern Europe, signed a heads of agreement, which it said "marks an important new chapter in the WHE story".

The assets have been transferred for a consideration of $4.04m-worth of shares of Linc Energy.

WHE announced the deal as part of its half-year results, which showed the group's loss for the year hit AUD 31.88m, compared to $4.24m in 2012. The sharp fall was mainly due to the loss on the planned sale of the UCG assets of $30.4m.

During the year the company has been focused on the uranium industry, which it believes has "significant potential for value accretion".

The group said it was progressing with the development of the Mecsek Hills Uranium Project, which is one of the largest uranium deposits in Europe. In November, the assessment of the feasibility of the property was completed, with no critical concerns having been raised.

The consolidated entity had cash and equivalents of $1.2m at the year-end, compared to $5.4m