80 Mile (AIM:80M) announced it has agreed indicative terms for an all-share merger with Greenland Energy Company, its existing joint venture partner in Greenland's Jameson Land Basin.
The London-listed explorer, focused on energy, critical minerals and industrial gas projects in Greenland, Finland and Italy, would receive 0.01108 new Greenland Energy shares for each 80 Mile share held.
Based on Greenland Energy's Nasdaq closing price of $1.37 on 4 September, that values 80 Mile's issued share capital at £61.48 million, or approximately 1.1p per share.
The indicative price represents a 42.86% premium to 80 Mile's closing price the day before terms were agreed, and a 64.18% premium to the price at which the company last placed shares in July.
Greenland Energy holds rights to earn up to a 70% working interest across 2.1 million acres of the Jameson Land Basin, where independent engineering work has identified gross unrisked prospective recoverable resources of approximately 13 billion barrels of oil.
The merger would consolidate full ownership of those licences under one Nasdaq-listed vehicle, combining 80 Mile's wider portfolio, including the Disko-Nuussuaq copper-nickel project and the Dundas ilmenite deposit, with Greenland Energy's capital markets access.
"Our ambition is straightforward: to build a great company in Greenland, with Greenland and for Greenland," said Larry Swets, Greenland Energy's executive chairman.
Greenland Energy has already built a 4.42% stake in 80 Mile through recent purchases at up to 0.82p a share, setting the floor for any formal offer under Takeover Code rules.
Any firm offer remains conditional on due diligence, unanimous recommendation from 80 Mile's independent directors, and approval from Greenland Energy's disinterested directors.
Under Takeover Code Rule 2.6, Greenland Energy must announce a firm intention to bid, or walk away, by 5pm on 6 October.
News Intelligence what this means for the company
Greenland Energy has agreed indicative terms to acquire 80 Mile in an all-share merger valuing the explorer at £61.48 million (1.1p per share), a 42.86% premium to the day-before close and 64.18% above the 0.67p placing price from July. The deal consolidates full ownership of the Jameson Land Basin licences—where the regulator confirmed no competing licences can be granted—under a single Nasdaq-listed vehicle, combining 80 Mile's wider portfolio with Greenland Energy's capital markets access; a firm offer decision is due by 6 October.
The merger removes 80 Mile's standalone liquidity and listing status but locks in a 42.86% premium and provides access to Greenland Energy's Nasdaq capital markets, potentially improving future funding optionality for the combined entity's Jameson Land and wider portfolio. Execution risk remains material: the deal is conditional on due diligence, unanimous independent director recommendation, and Greenland Energy director approval by 6 October.
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