TMK Energy acquires full ownership of Gurvantes XXXV Project

TMK Energy Limited (ASX: TMK), a notable name in the energy sector, has successfully completed a significant acquisition, consolidating its ownership to 100% of the Gurvantes XXXV Project. This strategic move was accomplished through the acquisition of a 33% interest in the project from Talon Energy Limited (Talon), marking a pivotal moment for TMK Energy.

The finalization of this deal involved the issuance of 1,092,000,000 fully paid shares and 546,000,000 listed options (ASX:TMKOB) to Talon, collectively known as the Consideration Securities. In addition to these shares and options, TMK received a cash component of $600,000 from Talon at settlement, along with approximately $150,000 in ancillary cash held within the corporate entities acquired.

Talon Energy has planned an in-specie distribution of the majority of the Consideration Securities to its shareholders, to be completed by no later than December 22, 2023. Some of these securities will be subject to voluntary escrow until June 30, 2024, with TMK set to provide further details on the escrowed securities post the record date for the distribution.

TMK Energy takes 100% ownership of Gurvantes XXXV Project in deal with Talon Energy

Brendan Stats, CEO of TMK Energy, expressed enthusiasm about the acquisition. He welcomed Talon and its shareholders, who will continue to be involved in the project and the company through the in-specie distribution of Consideration Securities. Stats highlighted the Gurvantes Project’s alignment with TMK’s milestones and its promising performance in the pilot well program. Looking forward to 2024, TMK Energy aims to further demonstrate the project’s potential as a world-class coal seam gas resource, strategically positioned near the world’s largest energy market.

This acquisition signifies a major step for TMK Energy in terms of resource control and strategic positioning within the energy sector. It represents not only an expansion of TMK’s asset portfolio but also a strengthening of its market presence, especially in the context of global energy demands.

The Gurvantes XXXV Project, located in the South Gobi basin of Mongolia, encompasses an extensive area of around 8,400 square kilometers dedicated to exploring Coal Seam Gas (CSG). This project stands out due to the presence of multiple coal seams within its boundaries, each notably thick (exceeding 50 meters) and of high quality, bituminous rank. These coal seams are visibly outcropping at the surface and stretch approximately 150 kilometers along an east-west direction.

Significantly, the Project area is a hub of coal mining activity, hosting six active coal mining operations. Additionally, there are twenty-six coal mining leases and numerous coal exploration licenses in the area. Together, these operations and licenses have identified a substantial coal resource, making the Gurvantes XXXV Project a significant site for coal and CSG exploration in Mongolia.