Forte Energy NL

September 16, 2013 02:00 ET

Update on Proposed Acquisition and Placement

                                                                                   Forte Energy NL
                                                                        ASX, AIM and Media Release
16 September 2013

                                      AND SHARE PURCHASE PLAN

Further to the announcement of 15th August 2013, Forte Energy NL ("Forte Energy" or "the Company")
(ASX/AIM:  FTE) announces that the proposed acquisition of Leo Mining and Exploration ("Leominex")
("the  Acquisition")  will  not proceed because the parties could not agree  on  certain  proposed
material  amendments  to  the agreed terms including the withdrawal by Leominex  of  some  of  the
assets.  Forte  Energy  does  not believe that going ahead with the Acquisition  is  in  the  best
interests  of  the  Company  and its shareholders as a whole. However, the  Company  continues  to
consider a number of other opportunities with regard to its growth strategy, and the management of
Forte  Energy  believe  that the best interests of shareholders will be  better  served  by  other
potential transactions.

Proposed Placing

The  second  tranche  of  the  share placing announced on 15 August  ("Placing")  was  subject  to
shareholder approval and, inter alia, on the Acquisition. The Company is pleased to announce  that
despite  the  decision  not  to continuewith the Acquisition, the Company  has  retained  investor
commitments  to  raise approximately £0.75m. The Placing will comprise the issue of  up  to  187.5
million ordinary shares ("Placing Shares") at 0.4 pence (approximately 0.7 cents) per share to new
and  existing institutional shareholders and sophisticated investors in the United Kingdom,  North
America, Asia and Australia. The Company will therefore convene a general meeting ("GM") at  which
it  will  seek  shareholder approval to, inter alia, allot the Placing Shares and to  refresh  its
share  issuance  capacity. It is expected a Notice of Meeting will be posted to shareholders  next
week and the GM held on or around 21 October 2013.

The  proceeds of the placing will be used for general working capital purposes whilst the  Company
pursues other acquisitions with a view to driving shareholder value.

Application will be made for all the Placing Shares to be admitted to trading on both ASX and  AIM
and  it is anticipated that the Placing Shares will be admitted to trading on AIM on or around  22
October 2013.

Subject  to  any  required  regulatory approvals, Mark Reilly,  a  director  of  Forte  Energy  is
participating in the Placing through a subscription for 12.5 million new ordinary shares.  Details
of  his commitment to the Placing and his shareholding in the Company before and after the Placing
are set out in the table below:

Director         Current No. of       % of       Subscription to      Shares held        % of
                  Shares Held       Current       Placing Shares     post-Placing      Enlarged
                                     Issued                                              Share
                                    Capital                                           Capital (1)
Mark Reilly           17,416,333         1.82           12,500,000       29,916,333          2.39%
    (1)     Assuming all 187.5m Placing Shares are admitted

As part of the Placing the Company also intends to allow all existing eligible shareholders, being
shareholders resident in Australia, New Zealand and the United Kingdom, to participate on the same
terms  as detailed above through a Share Purchase Plan. The Notice of Meeting will include details
of  a Share Purchase Plan which will allow each eligible existing shareholder to subscribe for  up
to  A$15,000 of new ordinary shares at the issue price of 0.4 pence (approximately 0.7 cents)  per
share.  If shareholders approve the Share Purchase Plan at the GM, a prospectus will be issued  to
all eligible shareholders inviting them to participate

Commenting on the Placing, Mark Reilly, Managing Director of Forte Energy, said:

"We  are  pleased  with the continued support from our shareholders and remain  focused  on  other
potential transaction opportunities which will best complement the Company's growth strategy."

For further information contact:

Mark Reilly, Managing Director
Forte Energy NL                          Tel: +44 (0) 203 3849555

Stuart Laing
RFC Ambrian Ltd                          Tel: +61 (0) 8 9480 2506
(AIM Nominated Adviser to the Company)

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

Bobby Morse/Cornelia Browne
Buchanan                                 Tel: +44 (0) 207 466 5000

About Forte Energy

Forte Energy is an Australian-based minerals company focused on the exploration and development of
uranium  and  associated bi-products in Mauritania and Guinea in West Africa. The Company  has  an
extensive  pipeline  of  assets  and  total JORC resources of 76.8Mt  @  266ppm  U3O8for  44.9Mlbs
contained U3O8 (100ppm cut-off).

Its  flagship  assets are the A238 prospect (23.4Mlbs U3O8) and the Bir En Nar  project  (2.06Mlbs
U3O8) in Mauritania, and the Firawa Project in Guinea (19.5Mlb U3O8).

Forte Energy U3O8 JORC resources (all at a 100ppm cut-off):

Project            Resource Category        M tonnes         ppm U3O8       Contained U3O8 Mlbs
A238*                         Inferred             45.2              235                     23.4
Bir En Nar                   Indicated              0.5              886                      1.0
                              Inferred              0.8              575                      1.0
Firawa                        Inferred             30.3              295                     19.5
Total                        Indicated              0.5              886                      1.0
                              Inferred             76.3              262                     43.9
                                 Total             76.8              266                     44.9

        * A238NW Anomaly included in the A238 Inferred Resources
The  Company  is quoted on the Australian Stock Exchange (ASX: FTE) and AIM market of  the  London
Stock Exchange (AIM: FTE). For more information, visit

The  information  in this report that relates to the reporting of Mineral Resources  is  based  on
information compiled by Mr. Galen White, who is a Fellow of the Australasian Institute  of  Mining
and  Metallurgy (FAusIMM). Mr White is the Principal Geologist of CSA Global (UK) Ltd. CSA  Global
have  an  on-going  role as geological consultants to Forte Energy NL. Mr.  White  has  sufficient
experience  which  is  relevant  to  the  style  of  mineralisation  and  type  of  deposit  under
consideration  and  to the activity which he is undertaking to qualify as a  Competent  Person  as
defined  in  the  2004  Edition of the 'Australasian Code for Reporting  of  Exploration  Results,
Mineral  Resources and Ore Reserves'. Mr. White consents to the inclusion in this  report  of  the
matters based on his information in the form and context in which it appears.

Contact Information

  • Forte Energy NL