2014-04-04 08:04:15 -
Vancouver, British Columbia (FSCwire) - European Uranium Resources Ltd. (the "Company") (TSXV: EUU) has entered into a binding heads of agreement for the sale of its Kuriskova and Novoveska Huta, Slovakia uranium projects to Forte Energy NL Forte (ASX/AIM: FTE).
This sale represents the sale of the Company’s only remaining mineral projects. The Company intends to investigate mineral projects to option or acquire in multiple commodities in the general European area. On completing this transaction, the Company will have its initial funding to implement its business plan.
Forte is an ASX and AIM listed emerging international exploration and development company with a portfolio of uranium assets in the Republics of Mauritania and Guinea, West Africa. Areva has a 4.5 per
cent shareholding in Forte. The acquisition of the Company’s Slovak uranium assets is a significant expansion of Forte’s uranium asset portfolio. This creates a uranium explorer and developer with an enhanced portfolio of project interests and the technical and financial expertise to advance its assets towards production.
Forte is arm’s length to Company and there is no finder’s fee payable. The agreement is subject to regulatory approval and the approval of the shareholders of both the Company and Forte. The terms of the agreement require that:
1. Forte will issue 854,875,000 fully paid ordinary shares with an approximate value of $7,000,000, which the Company intends to distribute on a pro-rata basis to the shareholders of Company;
2. Forte will issue 61,062,500 fully paid shares to Company, with an approximate value of $500,000;
3. Forte will pay the Company $1,000,000 on closing; and
4. Forte will grant Company a 1% production royalty over the Kuriskova and Novoveska Huta uranium licenses in perpetuity.
The sale price is equivalent to approximately $8.5 million before assigning value to the production royalty. The market capitalization of the Company’s stock at the time its stock was halted in early December 2013 was $6.3 million. The sale price represents a premium approaching 35%. Company has offered Forte, and Forte has agreed to complete, an exclusive non-brokered private placement to raise $100,000 through the issuance of 1,111,111 units at a price of $0.09 per unit (the “Unit. Each Unit will consist of one common share and one-half of one non-transferable common share purchase warrant, with each whole warrant entitling Forte to purchase one additional common share in the capital of the Company at a price of $0.15 for a period of 2 years. The offering is subject to TSX Venture Exchange approval and is intended to close within 7 days.
The Company is negotiating with the TSX Venture Exchange on the timing to resume trading.
EUROPEAN URANIUM RESOURCES LTD.
Dorian L. (Dusty) Nicol, President and CEO
For further information please contact: Dorian (Dusty) Nicol, at (604) 536-2711, or visit www.euresources.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements that are based on the Corporation's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans to continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Corporation disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
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Source: European Uranium Resources Ltd. (TSX Venture:EUU) www.euresources.com
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