Uranium explorer WildHorse Energy is diversifying into the coal sector through a deal that will see Mark Hohnen and Ian Middlemas join its board of directors.
WildHorse today announced plans to acquire unlisted Australian company Peak Coal, which has coal interests in southern Hungary that have potential for underground coal gasification.
The coal assets are located near WildHorse's Pecs uranium project, and will be acquired as part of a strategy "of becoming a substantial energy project developer in central Europe".
Mr Hohnen, who is chairman of Namibia-focused uranium stock Kalahari Minerals plc, and Mr Middlemas, chairman of uranium explorer Mantra Resources, along with project management executive Matt Swinney, will join the WildHorse board and intend being the key executives of the company.
Under the acquisition deal, WildHorse has proposed the issue of one of its shares for every three Peak shares held. The same ratio will also apply to Peak options.
Post merger, WildHorse will have a total of 159.16 million shares on issue and 32.1 million options.
Additionally, WildHorse has agreed to provide Peak with a $500,000 working capital facility.
Shares in WildHorse closed up six cents to 50.5c today.