80 Mile agrees terms for possible Greenland Energy merger

80 Mile PLC on Tuesday announced it has agreed indicative terms with Greenland Energy Co for an all-share merger.

80 Mile, the exploration and development firm with assets in Greenland, Finland and Italy, said the proposed transaction values its existing issued share capital at around £61.5 million and would consolidate 100% ownership of the Jameson Land Basin licences.

Greenland Energy is a Texas-based exploration company focused on exploring and developing the Jameson Land Basin in East Greenland, which 80 Mile described as "one of the world's largest undrilled onshore hydrocarbon basins".

80 Mile also confirmed that shareholder and director Roderick McIllree, who is also a shareholder in Greenland Energy, recused himself from discussions regarding the proposed transaction. He did not participate in deliberations by either board, the company said.

The transaction values 80 Mile shares at 1.1 pence each, a 43% premium to its closing share price on September 3, the last trading day before the deal terms were agreed.

Should the deal go through, 80 Mile shareholders will receive 0.01108 of a new Greenland Energy share for each 80 Mile share held, the company said.

Greenland Energy already holds a 4.4% stake in 80 Mile, having acquired 246.8 million shares between August 25 and September 3 at prices between 0.53p and 0.82p.

Greenland Energy brings "a significantly stronger financial position", 80 Mile said, including USD37.4 million in cash and cash equivalents as of June 30, 2026. 80 Mile said a merger with a company of Greenland Energy's financial strength would ensure its assets are less constrained by "capital availability, volatility and equity capital markets".

The companies expect the combination to reduce duplicated corporate functions and regional infrastructure, creating a more streamlined operating model.

Greenland Energy has until October 6 to confirm whether it intends to make an offer, 80 Mile said.

In August, 80 Mile received a warning from the local government in East Greenland, which it said at the time concerned "the landing of equipment at Nerlerit Inaat airport, near Ittoqqortoormiit in East Greenland."

Greenland's Ministry of Trade & Mineral Resources said at the time 80 Mile lacked "necessary approvals from the mineral resources authority in place before initiating this operation."

Shares in 80 Mile were up 7.4% to 0.81 pence per share on Tuesday afternoon in London.

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