Disposal of Methane Assets

RNS Number : 2738F

Hargreaves Services PLC

22 May 2013

 



For immediate release                                                                                                           22 May 2013

HARGREAVES SERVICES PLC

("Hargreaves" or "the Company")

Disposal of Coal Mine Methane Assets at Maltby Colliery

Hargreaves Services plc (AIM: HSP), the UK's leading supplier of solid fuels and bulk material logistics, announces that its subsidiary Maltby Colliery Limited has agreed the sale of certain coal mine methane assets held at Maltby Colliery to Alkane Energy plc ("Alkane") for up to £7.5 million.

Hargreaves will receive an initial payment of £5.5 million in cash on completion followed by up to a further £2.0 million payable six months after the mine shafts have been filled and capped as part of Maltby's planned closure and restoration programme. It is anticipated that these tasks will be completed during the first half of 2014.

Gordon Banham, CEO of Hargreaves, commented: "We are pleased to announce this disposal. Alkane is well positioned to maximise the value of these assets and this has created the basis for a deal that is beneficial to both parties. This disposal constitutes an important step towards realising our asset disposal targets for Maltby, which we will seek to continue with the disposal of the underground assets in due course."

For further details:

Hargreaves Services	0191 373 4485
Gordon Banham, Group Chief Executive
Iain Cockburn, Group Finance Director
Buchanan	020 7466 5000
Mark Court / Fiona Henson / Sophie Cowles
N+1 Singer (Nomad & Joint Broker)	020 7496 3000
Sandy Fraser / Nick Owen
Jefferies International Limited (Joint Broker)	020 7029 8000
Sara Hale / Harry Nicholas

 

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