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Additional information
Additional Information
Market: ASX / AIM
Sector: General Mining
Epic: FTE
News: Latest news
Web Site: Forte Energy
Other Articles: 23-02-201004-02-201001-02-2010

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Forte Energy

Forte Energy

Forte Energy NL is an Australian-based minerals company focused on the exploration, evaluation and development of uranium and energy-related projects worldwide.

The Company changed its name from Murchison United NL on 25 November 2008.

Forte Energy has secured an extensive portfolio of uranium projects in the Republics of Guinea and Mauritania in West Africa, where it is pursuing intensive exploration programs. The Company also holds copper and cobalt interests in Queensland and Western Australia, Australia.

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Monday, June 01, 2009

Forte Energy tucks away A$10 million in placing, expects uranium resource statement shortly

by Proactiveinvestors company news image

Concerns about the ability to raise new capital in the markets continue to ebb as more and more commodity focused juniors successfully manage to place shares with new and existing investors. Forte Energy (AIM & ASX: FTE) added its name to the list of companies to complete a fundraising, after the company announced that it had placed 100 million shares at A$0.10 per share (approximately 5 pence per share), raising A$10 million in new capital. 

Mark Reilly, Managing Director of Forte was clearly pleased about the success of the placing, stating: “In the current difficult financial climate, we are delighted to have secured a strong financial platform from which the Company can aggressively progress its existing projects and its ongoing appraisal of new projects.”

Forte Energy’s focus is uranium in Africa, an area that is rapidly garnering attention as a hotbed of activity for uranium exploration and discovery after the impressive string of substantial discoveries and transactions in Namibia and Niger in recent years.  

Forte’s own focus is West Africa, where it has a joint venture with French heavyweight Areva at the Bir En Nar uranium prospect in Mauritania.  In total, Forte Energy has four exploration licences in Mauritania, covering a mind-boggling 8,200 square kilometres. The key target areas are part of a geological formation called the ‘Reguibate Massive’, which is part of the West African Shield.


French giant Areva is best known for its nuclear power plant and transmission interests, but in fact, it is the only company in the world that has interests in every industry linked to nuclear power - from mining uranium to dismantling old nuclear power plants. Areva publicly listed the company on the NYSE Euronext, and has a market capitalisation in the region of €15 billion.

Ninety per cent of Areva’s parent company is controlled by the French Government and, to cut a long story short, the French Government has a lot of say at Areva. It may be a PLC, but it operates in the nuclear industry and its interests are aligned to the French Government - so in a sense, Areva is not really influenced by fluctuations in the uranium spot price. It is in for the long game, and the long game is a projected surge in nuclear power plant developments across the globe, over the next 10-20 years. Areva will be a major benefactor, and to support the surging demand in nuclear power, it has a vested interest in ensuring there is an ample supply of uranium.


The co-operation agreement with Areva, signed in 2008, has a number of facets to it. First, Areva agreed to take a 5% stake in Forte Energy at A$0.135 (6.5 pence) per share, injecting approximately £1.15 million. Second, Forte Energy issued a further 10% stake to Areva in return for access to its exploration database, plus technical services, equipment and personnel.

If a minimum of 60 million pounds of inferred uranium resource can be delineated in the first two years, the two companies will form a joint venture. Forte Energy’s deal with AREVA gives it two years to come up with something of a size and grade that would entice AREVA into the next stage of the deal.


Meanwhile, Forte Energy continues with drilling in Guinea and Mauritania. The additional capital raised today will be used to test additional exploration targets in both Mauritania and Guinea, and to help complete a maiden JORC compliant resource statement at the Firawa Uranium Project, which is expected in “three to four weeks”.

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