Mining firms merge to create Clontarf Energy

TWO of the Irish mining and exploration companies chaired by businessman John Teeling are to merge under the new name, Clontarf Energy.

Persian Gold – which is listed on London’s Alternative Investment Market (AIM) and mines for gold and precious metals in Iran – is to acquire Hydrocarbon Exploration, in what is ultimately a reverse takeover.

Hydrocarbon is, in essence, the newest name in the Teeling portfolio – formed by the remaining assets left over after Pan Andean Resources was bought out by Canadian company, Petro-minerales, earlier this year.

Hydrocarbon retained Pan Andean’s US (Gulf of Mexico) and Bolivian-based assets after Petrominerales bought the Colombian and Peruvian assets.

“This is a good proposal for both companies. Hydrocarbon gets a stock exchange listing, which gives liquidity to its shareholders and Persian Gold expands its oil and gas portfolio. The increased sale will make the combined venture more acceptable to investors,” said Mr Teeling.

Meanwhile, Persian Gold’s shares have been suspended from AIM until the deal – which requires regulatory, legal and shareholder approval – goes through.

The deal – given Persian’s share price of 6.75p – values Hydrocarbon at about £4.3 million (€5.2m).

Persian will be buying all Hydrocarbon shares, from current shareholders, on the basis of 2,500 new shares of Persian for every one Hydrocarbon share held.

The new group, Clontarf Energy, will have a variety of assets across Iran, Bolivia and Ghana.