80 Mile has agreed terms for a proposed all-share merger with US-based Greenland Energy, valuing the AIM-listed company at £61.48m.

The transaction would create a diversified energy and critical minerals business focused on Greenland and consolidate ownership of the highly prospective Jameson Land Basin.

Under the proposed deal, Greenland Energy would acquire 80 Mile in an all-share transaction valuing the AIM company at approximately £61.48m, equivalent to around 1.1p per share. The offer represents a premium of roughly 46.7% to 80 Mile's closing share price immediately before the offer period began.

The companies said the combination would bring together 80 Mile's portfolio of energy, critical minerals and industrial gas assets with Greenland Energy's access to capital markets and existing financial resources, creating a larger and better-funded platform for future development.

For shareholders, the proposed consideration would be paid entirely in Greenland Energy shares, with 80 Mile investors receiving 0.01108 Greenland Energy shares for each 80 Mile share held. As a result, shareholders would retain exposure to the underlying assets through ownership in the enlarged Nasdaq-listed group.

The strategic rationale centres on the companies' existing partnership in Greenland's Jameson Land Basin, one of the largest onshore hydrocarbon exploration opportunities in the Arctic region.

Greenland Energy currently has rights to earn up to a 70% working interest in the project by funding early drilling activity. A successful acquisition would consolidate interests in the licences within a single corporate structure.

Both companies argue that combining the businesses would improve funding options, simplify ownership arrangements and eliminate overlapping corporate costs. Greenland Energy's recent $70m fundraising, together with cash reserves of approximately $37.4m at the end of June, is expected to strengthen the development prospects of the combined portfolio.

Through 80 Mile's portfolio, the enlarged company would gain interests in projects including the Disko-Nuussuaq copper, nickel and cobalt district in Greenland, the Dundas ilmenite project and a number of European industrial minerals opportunities.

Larry Swets, executive chairman of Greenland Energy, said: "Greenland possesses extraordinary natural resources, but realizing their potential requires access to capital, infrastructure, technical expertise and patient investment. By bringing these companies and assets together, we believe we can create a stronger platform capable of investing in Greenland."

80 Mile shares rose around 7% during trading on Tuesday.

Denver, Colorado-based Greenland Energy has already established a stake in its proposed target, having acquired approximately 246.8 million 80 Mile shares, equivalent to 4.42% of the company's issued share capital, in purchases made between late August and early September.

This is one of the larger M&A developments on AIM this year currently developing and reflects growing investor interest in Greenland's natural resource potential. The deal remains subject to a number of pre-conditions, including satisfactory mutual due diligence, approval by the relevant directors and agreement on definitive transaction terms. Both companies stressed that there can be no certainty that a firm offer will ultimately be made.

Greenland Energy must announce a firm intention to make an offer or walk away by 5pm on 6 October, unless the deadline is extended by the Takeover Panel.

---