Forte Energy NL
ASX, AIM and Media Release
16 September 2013
UPDATE ON PROPOSED ACQUISITION OF LEO MINING AND EXPLORATION LTD, ("LEOMINEX") PROPOSED PLACING
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)
finnCap
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 www.forteenergy.com.au
Note:
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.