Forte Energy NL

October 14, 2014 02:00 ET

Restructuring of Darwin Financing Facilities

                                                                                            Forte Energy NL
                                                                                           ACN 009 087 852
                                                                                       ASX and AIM Release
                                                                                           14 October 2014

Additional Funding Made Available Following Restructuring of Darwin Financing Facilities

Forte  Energy  NL  ("Forte  Energy" or "the Company") (ASX/AIM: FTE), the  emerging  international  uranium
company  focused  on the exploration and development of uranium assets, is pleased to advise  that  it  has
secured  additional funding for working capital following renegotiation of its financing arrangements  with
its long-term financial partner, Darwin Strategic Limited ("Darwin").

As a result of these negotiations:
    *       Both  parties  have agreed to the early expiration of the £10 million discretionary  financing
            facility announced on 15 February 2013;
    *       Darwin have agreed an extension to the maturity date of its existing convertible loan to 9 January
            2016 on the terms as previously announced;
    *       Both parties have entered into a new £500,000 Controlled Equity Offering Agreement (Performance
            Swap); and
    *       As  part of the Controlled Equity Offering, Darwin is to receive 60,692,308 warrants  with  an
            exercise price of £0.0032 and five year expiry period.

The  Company is pleased to announce that it has entered into the newly developed Controlled Equity Offering
("CEO") agreement with Darwin Strategic Limited ("Darwin").

The  CEO  allows  the  Company,  at  its sole discretion, to raise proceeds  by  opportunistically  selling
Subscription  Shares  to  investors in the market via an instruction to Darwin. The  Company  retains  full
control  of  the  timing and the price shares are sold at and receives 100% of the proceeds  less  a  fixed
commission to Darwin.

As  such,  the  Company has issued 192,307,692 ordinary shares to Darwin Strategic at 0.26p  ("Subscription
Shares").   The  aggregate  issue price of £500,000 will be satisfied by the issue  of  500,000  redeemable
subscription notes of £1 each by Darwin to Forte ("Subscription Notes").  Completion of the subscription is
conditional upon the Subscription Shares being admitted to trading on AIM on or before 17 October.

In  light  of the Convertible Loan Notes (CLN) owed to Darwin, Darwin has agreed with Forte a protocol  for
the  sale  of shares under the CLN and CEO, such that the Company will initially receive the proceeds  from
the  first  £100,000  notional  value of shares sold by Darwin prior to Darwin  exercising  its  conversion
rights. Thereafter, to the extent that the CLN remains outstanding, where Forte chooses to raise funds  via
the CEO facility, an agreed proportion may be in respect of the CLN.

The  Company and Darwin have also mutually agreed to cancel the existing EFF agreement as announced  on  15
February 2013.

Forte  advises  that documentation for the Share Purchase Plan is being finalised and  should  be  sent  to
shareholders within the next two weeks.

Commenting, Mark Reilly, MD said: "We are delighted to receive the continued support from Darwin  and  look
forward  to  being  able  to utilise this highly flexible and transparent funding to  advance  our  uranium

Application  has  been  made to the London Stock Exchange for the new ordinary shares  to  be  admitted  to
trading on AIM from 8.00am on 17 October ("Admission").

Following  Admission, there will be a total of 1,879,960,431 ordinary shares in issue. For the purposes  of
calculating  Total Voting Rights shareholders may use this number as the total number of  shares  in  issue
from the date of Admission.

Following  Admission, Darwin will be interested in 192,307,692 Ordinary Shares representing  10.2%  of  the
issued share capital.

Details of the CEO product:

Over  a period of 3 years following Admission, the Company will instruct Darwin to sell Subscription Shares
at  Forte's  direction  and  remit the proceeds (net of fees and expenses) to Forte  as  consideration  for
redeeming the Subscription Notes.

If at the end of the 3 year period commencing on Admission any Subscription Shares are still held by Darwin
such  that  any  Redeemable Subscription Notes remain outstanding, there will be  a  further  extraordinary
settlement  period  (the  "Additional  Period") to redeem the remaining  Subscription  Notes  and  pay  any
remaining  proceeds to Forte.  If at the end of the Additional Period Darwin still holds  any  Subscription
Shares, Darwin shall make a payment to Forte equal to the number of such Subscription Shares at the average
price at which it has sold Subscription Shares during the Additional Period.

For further information contact:

Mark Reilly, Managing Director
Forte Energy NL                          Tel: +61 (0) 8 9322 4071

Geoff Nash/Ben Thompson                  Tel: +44 (0) 207 220 0500
Elizabeth Johnson (broking)

Oliver Morse / Trinity McIntyre
RFC Ambrian Ltd                          Tel: +61 (0) 8 9480 2500
(AIM Nominated Adviser to the Company)

Forte Energy NL

Suite 3, Level 3
1292 Hay Street
West Perth WA 6005
Ph: +61 (0)8 9322 4071
Fax: +61 (0)8 9322 4073

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