Oversubscribed deal finances uranium exploration and feasibility work
By Devika Patel
Knoxville, Tenn., Jan. 19 - Forte Energy NL said it will complete a private placement of shares. The "significantly oversubscribed" offering is slated to raise A$15 million.
The company will sell 120 million ordinary shares at A$0.125 per share. The price per share is a 10.71% discount to the Jan. 18 closing share price, A$0.14.
StoneBridge Group was the bookrunner in Asia and Australasia; Matrix was the broker in the United Kingdom.
Proceeds will be used for exploration and feasibility work on Forte Energy's West African uranium portfolio.
"We are very pleased to have received such a high level of support from new and existing institutional shareholders for this capital raising, which was significantly oversubscribed," managing director Mark Reilly said in a press release. "The proceeds will enable Forte Energy to remain on track to release a JORC Code compliant resource at our A238 uranium prospect during the first half of 2011, further explore the numerous other high-priority prospects on its Mauritanian ground holding and to commence the pre-feasibility work at our Firawa project in Guinea."
Forte Energy, based in Perth, Western Australia, is an emerging uranium company.
| Issuer: | Forte Energy NL
|
| Issue: | Ordinary shares
|
| Amount: | A$15 million
|
| Shares: | 120 million
|
| Price: | A$0.125
|
| Warrants: | No
|
| Agents: | StoneBridge Group, Matrix
|
| Pricing date: | Jan. 19
|
| Stock symbol: | Australia: FTE
|
| Stock price: | A$0.14 at close Jan. 19
|
| Market capitalization: | A$81.3 million
|
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