4th Apr 2014 09:57
LONDON (Alliance News) - Forte Energy NL Friday said it has entered into a binding deal for the acquisition of the uranium assets of European Uranium Resources Ltd for roughly CAD8.5 million.
The uranium explorer said European Uranium is a Toronto Stock Exchange-listed company with interests in a portfolio of uranium assets in Slovakia, which Forte said would complement its existing projects.
The company said the acquisition will create a diversified, larger-scale globally focussed exploration and development company with a well-balanced portfolio of uranium assets, including the newly acquired Kuriskova Project.
Forte Energy said the Kuriskova project holds an indicated uranium resource of 18.5 million pounds and an inferred uranium resource of 12.7 million pounds, as part of a total measured, indicated and inferred resource of 57.6 million pounds.
The company noted that the resources would more than double its current indicated and inferred uranium resource of 44.9 million pounds at the A238 site and Bir En Nar site in Mauritania, and its Firawa site in Guinea.
Forte Energy said the acquisition would be effected by the issuance of 915.9 million shares at AUD0.008 per share, about 0.44 pence, with an approximate value of CAD7.5 million and a further payment of CAD1.0 million upon completion.
The company also said it will grant European Uranium a 1% production royalty over the licences in perpetuity, and it will subscribe for 1.1 million shares in the capital of European for a subscription amount of CAD100,000.
The firm said the deal is subject to certain conditions and, if it goes ahead, European Uranium has the right to appoint one non-executive director to its board of directors.
Forte Energy shares were down 20% to 0.541 pence, putting it in the top AIM fallers Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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